Markets Remain Heavily Volatile As RBI MPC Discusses Key Rates, Sensex, Nifty Open Session In Red

Market participants are now closely tracking the Reserve Bank of India’s (RBI) bi-monthly Monetary Policy Committee (MPC) meeting, which began yesterday.

Notably, the GIFT Nifty indicated a robust day ahead for domestic equities as the index climbed close to 50 points and touched 24,753.50 as of 8:40 AM.

Source : Freepik

Investors remained hopeful for another rally on Tuesday, however markets showed heavy volatility. Just a day before the RBI MPC shares its decision on key rates and fiscal policy going ahead, sentiment in the market remained heavy.

The BSE Sensex opened at 81K, losing about 18 points, while the NSE Nifty50 started trading just under 24,700, falling close to 30 points and stood at 24,694.60 as of 9:15 AM.

On the 30-share Sensex, SBI, Bharti Airtel, UltraTech Cement, Maruti, and HCL Tech emerged among the gainers in the market opening hour. Meanwhile, the laggards included M&M, Infosys, Reliance, HUL, and ICICI Bank.

In the broader markets, indices remained nearly flat, but it was a mix of red and green throughout. The Nifty Financial Services index stood out and fell 0.28 per cent. Sectorally, the Oil & Gas index tanked 0.44 per cent, while the PSU Bank index climbed 0.35 per cent.

Notably, the GIFT Nifty indicated a robust day ahead for domestic equities as the index climbed close to 50 points and touched 24,753.50 as of 8:40 AM. However, in the pre-open session, the Sensex slipped over 70 points and stood under 80,950, while the Nifty stood nearly flat at 24,720.25, as of 9:11 AM.

All Eyes On RBI MPC August 2025

Market participants are now closely tracking the Reserve Bank of India’s (RBI) bi-monthly Monetary Policy Committee (MPC) meeting, which began yesterday. The outcome, due on Wednesday, August 6, will provide key guidance on interest rate moves and the broader monetary stance.

This week’s policy review is especially significant as the US gears up to impose 25 per cent tariffs on Indian exports starting August 7. Analysts suggest that the central bank might consider a proactive approach to shield the economy from potential external headwinds arising from these new trade barriers.

How Did Markets Fare In Previous Trading Session?

Indian equities began the week on a firm note, with benchmark indices ending Monday’s trading session sharply higher. The BSE Sensex rallied over 400 points to finish above the 81,000 mark, while the NSE Nifty50 closed at 24,723, registering a gain of more than 150 points.

The upbeat momentum in Indian stocks was underpinned by multiple supportive cues. According to Vinod Nair, Head of Research at Geojit Financial Services, "A weakening US Dollar, along with robust monthly auto sales and encouraging quarterly results from leading automakers, helped renew investor interest in these sectors. Meanwhile, rising unemployment and slower job creation in the US have reinforced expectations of a potential Fed rate cut. However, there still remains room for caution due to high US tariffs."