Profit-booking in recent outperformers, disappointing earnings from some bluechip companies and mixed global cues also weighed on the stock market sentiment.
    
The BSE Sensex opened lower at 29,143.63 and dropped further to 28,958.52 on fresh selling on weak Asian cues coupled with fresh foreign capital outflows.
    
However, the barometer recovered from mid-day losses to end above 29,000 level to 29,268.13 before ending at 29,122.27, a net loss of 60.68 points or 0.21 percent. This is its weakest closing level since 29,006.02 on January 22, 2015. It has now lost 559.50 points or 1.89 percent in the two sessions.



"RBI policy is being eyed by participants keeping rate-sensitives under pressure. The tone of RBI Governor and views on inflation and further rate cuts are awaited. Also, another setback for markets was weak manufacturing data for month of January," said WealthRays Securities, Director & CEO, Kiran Kumar Kavikondala.
    
Manufacturing growth slipped to a three-month low in January -- after a two-year high in the previous month – on slower pace of order flows from domestic and global markets, raising hopes of a rate cut by the RBI.

However, some bankers said RBI Governor Raghuram Rajan may go for a status quo and would like to wait for cues from the Budget presentation on February 28 before undertaking any rate cut.
    
Data showing that foreign portfolio investors sold shares worth a net Rs 771.55 crore last Friday also affected trading. Globally today, Asian equity markets ended mixed as data showing China's manufacturing sector remaining in a poor state dampened investor confidence.
    
Key indices in China, Hong Kong and Japan ended lower by 0.09 percent to 2.56 percent while indices in Taiwan South Korea and Singapore moved up by 0.18 percent to 0.95 percent.

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