Indian equity markets ended their four-session winning streak on Tuesday as investors adopted a cautious approach ahead of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting and ongoing peace talks between the United States and Iran.
Domestic markets remained under pressure amid cautious investor sentiment and global economic cues, with both the BSE Sensex and the NSE Nifty 50 closing lower.
According to analysts, investors preferred profit booking ahead of the RBI's MPC meeting, while global geopolitical developments and uncertainty in international markets also contributed to cautious market sentiment.
After a volatile trading session, the BSE Sensex declined 210.08 points, or 0.27%, to close at 78,428.95. During the session, the index had fallen to an intraday low of 78,211.87.
The NSE Nifty 50 dropped 159.40 points, or 0.64%, to settle at 24,614.90. The benchmark indices had recorded gains over the previous four trading sessions before Tuesday's decline.
Market participants are closely monitoring the RBI's MPC meeting for indications related to interest rates, inflation, and economic growth. Investors also remained cautious amid ongoing global diplomatic developments and geopolitical conditions, opting to reduce risk exposure ahead of any major policy decisions.
In the foreign exchange market, the Indian rupee remained largely stable. It closed at 95.3775 against the US dollar, compared with 95.3375 in the previous trading session. The limited movement in the currency market indicates that investors are awaiting the central bank's policy announcement and further global economic signals.
Among the 30 Sensex constituents, 14 stocks ended lower. Consumer and banking stocks witnessed the most pressure during the session. Hindustan Unilever declined about 1.7%. Shares of NTPC, HDFC Bank, Reliance Industries, IndiGo, Tech Mahindra, Power Grid, HCLTech and Infosys also closed lower.
On the other hand, select stocks attracted buying interest. Trent, Bajaj Finance, Bharat Electronics (BEL), Tata Steel, Mahindra & Mahindra, Bajaj Finserv, Titan and Sun Pharma ended the session with gains.
Within the Nifty 50, Grasim Industries, HDFC Life Insurance and Hindustan Unilever were among the top losers. Selling in these stocks added pressure on the benchmark index, while the broader market delivered a mixed performance.
The Nifty Midcap Index declined 0.29%, while the Nifty Smallcap Index closed 0.23% higher.
