Resuming its slide, the BSE index dropped by 46 points to 24,824.83 as the Chinese manufacturing activity fell to its lowest level in three years.

However, domestic manufacturing sector returned to growth in January, expanding at a four-month high pace on rise in new business orders, a monthly Purchasing Managers Index (PMI) survey conducted by Nikkei and Markit showed.

"Despite positive macroeconomic developments, participants failed to muster much cheer and continued to await the outcome of RBI's monetary policy meet scheduled for tomorrow." said Shreyash Devalkar Fund Manager Equities, BNP Paribas MF.

ICICI Bank with a loss of 5.63 percent was the worst hit from the Sensex pack followed by SBI at 3.92 per cent down. The Sensex resumed higher at 24,982.22 and firmed up to a high of 25,002.32 on initial buying. But, fell afterwards to 24,788.58 before ending at 24,824.83, showing a loss of 45.86 points or 0.18 percent.

The 50-share NSE Nifty moved down by 7.60 points or 0.10 percent to 7,555.95. "With the approaching Budget announcement carrying the potential for more spending, RBI could opt to ride out such event risk, before taking a call on easing further," said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas Financial Services.

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