Mumbai, Aug 4 (IANS) Benchmark equity indices ended lower on Tuesday, snapping their four-session winning streak, as investors turned cautious ahead of the Reserve Bank of India’s monetary policy decision due on Wednesday.
Weakness in banking, financial and IT stocks weighed on market sentiment. The Sensex declined 210.08 points, or 0.27 per cent, to settle at 78,428.95.
The Nifty fell 159.40 points, or 0.64 per cent, to close at 24,614.90. Commenting on Nifty technical outlook, experts said that the index gradually drifted lower throughout the day, slipping towards the 24,400 support zone and marking an intra-day low of 24,428.
“Although it attempted a recovery from lower levels, buying interest remained limited, and the index faced selling pressure near the 24,500 zone, reinforcing it as the immediate resistance zone,” an analyst stated.
“On the downside, the 24,400 zone remains the immediate support area. However, a sustained break below 24,400 could accelerate profit booking and drag the index towards the 24,300 support zone,” it added.
Market participants remained cautious during the session amid uncertainty surrounding the RBI’s policy outcome, which is scheduled to be announced on Wednesday.
Investors closely tracked interest rate expectations and the central bank’s commentary on inflation and economic growth.
Among Nifty constituents, Grasim Industries, HDFC Life Insurance Company and Hindustan Unilever emerged as the top laggards, exerting pressure on the benchmark index.
The weakness was also visible across several key sectors. Realty stocks witnessed significant selling, with the Nifty Realty index falling more than 2 per cent, making it the worst-performing sectoral gauge of the day.
The Nifty FMCG, Nifty Private Bank and Nifty Bank indices also ended lower.
In the broader market segment, performance was mixed. The Nifty MidCap index declined 0.29 per cent, while the Nifty SmallCap index managed to buck the trend and closed 0.23 per cent higher.
The decline in benchmark indices suggests that investors preferred to stay on the sidelines ahead of the RBI’s policy verdict after the strong gains recorded over the previous four sessions.
Experts said that market participants will now look for cues from the central bank’s outlook on interest rates, inflation and liquidity conditions to determine the market’s next direction.
–IANS
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