Share Market Today: Sensex Nears 78,750, Nifty Falls Over 150 Points Ahead Of RBI Policy, US-Iran Talks

Market participants largely stayed on the sidelines ahead of the RBI's policy announcement tomorrow, with traders looking for cues on the central bank's interest rate outlook and inflation assessment.

The mixed opening follows four consecutive sessions of gains for Indian equities, with investors now booking profits and awaiting fresh triggers before taking new positions.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• Indian markets opened mixed, awaiting RBI policy decision.
• Sensex gained, Nifty fell; Asian Paints rose, IT lagged.
• FIIs bought, crude rose; new auction distorted Nifty.

Indian benchmark equity indices opened on a mixed note on Tuesday as investors remained cautious ahead of the Reserve Bank of India's monetary policy decision and closely watched developments surrounding talks between the United States and Iran.

The BSE Sensex was trading 105.32 points, or 0.13 per cent, higher at 78,744.35, while the NSE Nifty50 declined 172.35 points, or 0.70 per cent, to 24,601.95 in early trade.

Investors Await RBI Policy Outcome

Market participants largely stayed on the sidelines ahead of the RBI's policy announcement, with traders looking for cues on the central bank's interest rate outlook, inflation assessment and growth projections. The policy decision is expected to set the tone for domestic markets in the near term.

Asian Paints, Tata Steel Lead; IT Stocks Under Pressure

Among the Sensex constituents, Asian Paints, Tata Steel, Trent, Bajaj Finance, Bharat Electronics and Kotak Mahindra Bank were the top gainers in early trade.

On the other hand, Infosys, Hindustan Unilever, HDFC Bank and Tata Consultancy Services traded lower.

In the commodities market, Brent crude, the global oil benchmark, was up 1.36 per cent at $84.91 per barrel.

Meanwhile, Foreign Institutional Investors (FIIs) remained net buyers on Monday, purchasing equities worth Rs 922.26 crore, according to exchange data.

Elsewhere in Asia, Japan's Nikkei 225, South Korea's Kospi and Hong Kong's Hang Seng were trading in negative territory, while China's Shanghai Composite edged higher. US equities ended Monday's session with strong gains, providing positive cues for global markets.

Sentiment also remained guarded as investors monitored developments around the planned talks between the United States and Iran. The outcome of the discussions is expected to have implications for global crude oil prices and broader market sentiment.

The mixed opening follows four consecutive sessions of gains for Indian equities, with investors now booking profits and awaiting fresh triggers before taking new positions.

New Auction Mechanism Triggers Market Adjustment

The introduction of the CAS led to an unusual divergence in benchmark indices during Monday's session, with the Nifty posting a much sharper gain than the Sensex.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, the nearly 390-point jump in the Nifty was largely driven by the new closing auction process applicable to F&O stocks.

He said the distortion is expected to fade as markets adjust to the revised mechanism, adding that investors should not read too much into what was essentially a one-day anomaly.

Vijayakumar also noted that the more important takeaway for investors remains the improving macroeconomic environment, which continues to support market sentiment.

On Monday, the Sensex advanced 544.39 points, or 0.70 per cent, to close at 78,639.03, extending its winning streak to a fourth consecutive session. The Nifty surged 390.70 points, or 1.60 per cent, to finish at 24,774.30.