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Investors turn cautious

MUMBAI: The stock markets lost initial gains and the Sensex ended 99.37 points lower on Monday as investors turned cautious and booked profits at higher levels ahead of the U.S. Federal Reserves decision on interest rates.

Renewed selling was attributed to weakness in European markets due to the on-going crisis at the U.K. based mortgage lender Northern Rock, a victim of the global credit squeeze.

The U.S. Fed is expected to lower interest rates in its meeting on Tuesday but investors adopted a cautious approach as the market has already discounted a rate cut by 25 basis points, market players said. The market, however, is likely to get a boost if interest rates are lowered by 50 basis points, they added.

After an initial rally to the intra-day high of 15726.06 the Bombay Stock Exchange 30-share sensitive index later moved downwards. — PTI

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