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Sensex, Nifty Down Marginally In Cautious Trade Ahead Of RBI Policy

The Indian stock market recovered after an early fall Wednesday morning, but was still struggling to make a significant move up north as investors largely stayed cautious as they looked ahead to the Reserve Bank of India's monetary policy statement.

The overnight rally on Wall Street aided sentiment a bit, but worries about slowing global economy amid the ongoing trade dispute between the U.S. and China limited market's upside.

The benchmark BSE Sensex, which advanced to 37,066.59 after sliding to 36,885.48 in early trades, was down 36.10 points, or 0.1%, at 36,940.75.

The broader Nifty50 index of the National Stock Exchange was down 11.95 points, or 0.11%, at 10,936.30, after having recovered to 10,970.20 from a low of 10,913.40 earlier.

On Tuesday, the Sensex ended up 277.01 points or 0.75% at 36,976.85, while the Nifty index climbed 85.65 points or 0.79% to 10,948.25.

Shares of Yes Bank rose nearly 8%, extending gains from previous session. Zee Entertainment Enterprises, another star performer in early trades, moved up 5.5%.

Cipla gained 2.7% ahead of results. Sun Pharmaceutical Industries and Dr Reddy's Laboratories moved up 2% and 1.2%, respectively.

Wipro, IndusInd Bank, Bajaj Finance, Hindustan Unilever and Hero Motocorp gained 1.2 to 2%.

Indiabulls Housing Finance plunged more than 8% on weak results. The company announced after trading hours on Tuesday that its consolidated net profit dropped 24% to Rs 801.53 crore in the first quarter of this year, compared to the year-ago quarter. Total income was down 4.55% at Rs 3,886.12 crore in the first quarter.

Titan declined 3.2%. Tata Steel shed about 3%. JSW Steel, Mahindra & Mahindra, BPCL, Indian Oil Corporation, Grasim Industries and ONGC were down 1 to 2%.

Shares of IRB Infrastructure Developers Limited soared more than 11% despite the company reporting a 22.1% drop in net profit in the first quarter.

The Reserve Bank of India is scheduled to announce its monetary policy today. The central bank is widely expected to cut the repo rate by 25 basis points to 5.5%. The bank's views on GDP growth and inflation for the current financial year will likely set the trend for the market during the later part of the session.

In the currency market, the rupee opened at 70.96 against the U.S. dollar, down 15 paise from previous close.

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