Markets Snap Four-Day Winning Streak, Sensex Falls 210 Points As New Closing Auction Triggers Volatility
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On Tuesday, benchmark equity indices slipped lower, breaking a four‑day winning run as investors grew wary ahead of the Reserve Bank of India’s monetary policy announcement slated for Wednesday.
Key Takeaways
- Sensex fell 210.08 points (0.27%) to 78,428.95 and Nifty dropped 159.40 points (0.64%) to 24,614.90, ending a four-day winning streak.
- Banking, financial and IT stocks led the decline ahead of RBI’s monetary policy announcement.
- The index touched an intraday low of 24,428 before a limited bounce.
- Analysts flagged 24,500 as immediate resistance and 24,400 as the key support zone.
Declines in banking, financial and IT shares dragged sentiment lower. The Sensex fell 210.08 points, or 0.27%, closing at 78,428.95.
The Nifty dropped 159.40 points, or 0.64%, to finish at 24,614.90. Analysts noted that the index steadily eased lower during the session, moving toward the 24,400 support level and touching an intraday low of 24,428.
“Although the index tried to bounce from lower levels, buying interest stayed thin and selling pressure emerged around the 24,500 mark, cementing that level as the immediate resistance,” said an analyst.
“On the downside, the 24,400 area continues to act as immediate support. Nonetheless, a prolonged slide below 24,400 could trigger profit‑taking and push the index toward the 24,300 support level,” the analyst added.
Market participants stayed cautious throughout the session, uncertain about the RBI’s policy decision due on Wednesday.
Investors closely watched interest‑rate expectations and the central bank’s remarks on inflation and economic growth.
Among Nifty stocks, Grasim Industries, HDFC Life Insurance Company and Hindustan Unilever led the losers, weighing on the benchmark index.
The weakness extended to several key sectors. Realty stocks saw heavy selling, with the Nifty Realty index down more than 2%, marking it as the day’s poorest‑performing sector gauge.
The Nifty FMCG, Nifty Private Bank and Nifty Bank indices also closed lower.
In the broader market, performance was mixed. The Nifty MidCap index slipped 0.29%, whereas the Nifty SmallCap index bucked the trend, gaining 0.23%.
The drop in benchmark indices indicates that investors opted to stay on the sidelines ahead of the RBI’s policy verdict, following the strong gains posted over the prior four sessions.
Experts added that market participants will now seek guidance from the central bank’s outlook on interest rates, inflation and liquidity to gauge the market’s next move.
