Mumbai, Dec 1 (IANS) Domestic equity indices ended the market session slightly lower on Monday as investors turned cautious ahead of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting this week and profit booking in selected heavyweights.

Sensex closed at 85,641.90, down 64.77 or 0.08 per cent. The 30-share index opened with a decent gap-up at 86,065.92 against the last session's closing of 85,706.67. The index, however, did not hold the gaining momentum amid a cautious approach from investors.

Nifty settled at 26,175.75, down 27.20 points or 0.10 per cent.

"After reaching a new high, the market moved into a range-bound phase as expectations of an RBI rate cut in December faded following better-than-expected Q2 GDP growth and a sharp depreciation of the rupee," analysts said.

Sentiment turned slightly cautious due to muted GST collections in November, driven by lower rates.

Meanwhile, the auto index outperformed, supported by strong November sales, aided by GST rationalisation, benign inflation, and robust wedding season demand, they added.

From the Sensex stocks, Bajaj Finance, Sun Pharma, Trent, Mahindra and Mahindra, SBI, Bharti Airtel, Bajaj FinServ, HDFC Bank, and Axis Bank closed lower. Tata Motors PV, Maruti Suzuki, BEL, Kotak Bank, Adani Ports, HCL Tech, Tech Mahindra, Eternal, and NTPC ended higher.

Sectoral indices traded volatile amid a mixed approach from investors. Nifty FMCG fell 95 points or 0.17 per cent, Nifty Bank slipped 71 points or 0.12 per cent, and Nifty Fin Service decreased 75 points or 0.27 per cent. While Nifty Auto rose 218.40 points or 0.25 per cent, and Nifty IT escalated 144 points or 0.39 per cent.

Broader market followed the cautious approach as well as Nifty 100, Nifty Midcap 100 ended the session flat, while Nifty Smallcap 100 jumped 45 points or 0.25 per cent.

--IANS

aps/rvt/