Domestic equity benchmarks closed lower on Tuesday after a choppy trading session, with investor sentiment weighed down by persistent foreign fund outflows and caution ahead of the Reserve Bank of India’s (RBI) monetary policy announcement. The decline marked the eighth straight session of losses for both indices.
The 30-share BSE Sensex slipped 97.32 points, or 0.12 per cent, to end the day at 80,267.62. It had opened higher but gave up gains, moving between an intraday high of 80,677.82 and a low of 80,201.15. In the past eight sessions, the Sensex has lost 2,746.34 points, translating to a 3.30 per cent fall.
The broader NSE Nifty also finished in the red, down 23.80 points, or 0.10 per cent, to close at 24,611.10. Market breadth was mixed, with metal and banking counters advancing while realty and consumer durables stocks saw profit-booking.
Among the Sensex constituents, ITC, Bharti Airtel, Trent, Bajaj Finserv, Titan and Reliance Industries dragged the index lower. On the other hand, UltraTech Cement, Adani Ports, Tata Motors, Bharat Electronics, Bajaj Finance and Hindustan Unilever provided support with gains.
Analysts noted that investors were largely cautious ahead of the RBI’s Monetary Policy Committee decision, due on Wednesday, with expectations that the central bank could maintain a hawkish stance in view of persistent inflationary pressures.
The policy panel began its three-day deliberations on Monday, and markets are closely watching whether the RBI will adjust the policy rate or continue with its current stance.
Data from the exchanges showed that Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹2,831.59 crore on Monday. Domestic Institutional Investors (DIIs), however, cushioned the fall by purchasing stocks worth ₹3,845.87 crore.
On the global front, Asian markets were mixed: Shanghai’s SSE Composite index and Hong Kong’s Hang Seng ended higher, while South Korea’s Kospi and Japan’s Nikkei 225 settled lower. European markets were trading without a clear direction in early deals, whereas U.S. stocks had closed higher in the previous session.
Meanwhile, international crude prices eased, with benchmark Brent crude falling 1 per cent to $67.29 a barrel, offering some relief to oil-importing countries like India.
Investor attention is now firmly on the RBI’s announcement, with economists expecting the central bank to maintain the repo rate at its current level but possibly signal a cautious approach toward inflation and growth outlook for the coming months. Analysts say that any surprise change in the rate could trigger sharp market movements, making today’s subdued session a reflection of investor caution ahead of the policy decision.
The RBI’s statement is expected to provide guidance on monetary policy direction, liquidity management, and potential interventions to stabilize financial markets, all of which will be closely monitored by both domestic and foreign investors.
The market’s performance over the next few sessions will likely hinge on the RBI’s tone and the broader response of FIIs and DIIs to any changes announced tomorrow.
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