Domestic benchmark indices BSE Sensex and NSE’s Nifty 50 opened in red in early trade on Friday ahead of RBI’s three-day policy review meeting which is scheduled to start today. The S&P BSE Sensex opened at 35,097.99 and the Nifty50 index of the National Stock Exchange (NSE) at 10,514.10. After slipping over 300 points in early trade, the Sensex traded at 35,031.89, down 137.27 points or 0.39 per cent. Even 50-share Nifty plunged over 150 points and traded at 10,528.05, with a loss of 71.20 points or 0.67 per cent. According to reports more than 30 stocks of Nifty traded with losses. The Indian rupee opened marginally lower on Friday morning, but soon managed to recover and was trading little strong against the US dollar.

The Indian rupee earlier on Thursday sunk to its fresh low of 73.77 to a dollar, as global crude oil prices continued to climb. India imports nearly 80 per cent of its crude requirements, and a higher price will potentially worsen the current account deficit of Asia's third-largest economy. Today RBI, in its policy review meeting, will unveil its monetary policy where the central bank is likely to raise the repurchase rate by 25 basis points. The repo rate currently stands at 6.5 per cent.

According to reports, shares of Oil Marketing Companies (OMCs) moved upwards by up to 26 per cent in the opening trade. However, ONCG witnessed a steep fall of 13 per cent in early morning trade deals. Other top losers were HUL, Reliance Industries, ITC, HDFC twins and Hero MotoCorp. Meanwhile, in the global markets, Asian shares were fragile after benchmark U.S. Treasury yields surged to a seven-year high and strong economic data fanned concerns about inflation and the risk of faster-than-expected interest rate rises, a report by rews agency Reuters stated.

Even the oil prices rose on Friday, as traders focused on US sanctions against Iran's crude exports that are set to start next month to tighten global markets. The development comes soon after the government on Thursday announced a Rs 2.50 per litre cut in petrol and diesel prices by reducing excise duty and asking PSU oil firms to take a hit of Rs 9,000 crore.