Nifty 50 Slips 159 Points as Investors Brace for RBI Policy Decision

Indian benchmark indices closed in the red on Tuesday, August 04, 2026, as cautious sentiment dominated the trading session. The NIFTY 50 closed at ₹24,614.90, registering a decline of 159.40 points, or -0.64%. Similarly, the BSE Sensex fell to approximately 78303 points, losing approximately 0.43% from the previous session. Sectoral indices including Nifty IT and Nifty Bank also faced selling pressure, closing down 0.82% and 0.58% respectively.

Market volatility saw an uptick as the India VIX rose by 1.86% to reach 12.15, reflecting heightened hedging demand among participants. The Indian Rupee traded at approximately ₹95.34 against the US dollar, with the USD/INR exchange rate showing marginal movement. This currency pressure, combined with the anticipation of the upcoming monetary policy, has led to a defensive posture across equity portfolios, as investors weigh the impact of potential interest rate shifts on corporate borrowing costs.

The market remains hyper-focused on the Reserve Bank of India's upcoming policy announcement. With the Nifty Put-Call Ratio at approximately 1.494, bearish sentiment is currently elevated. Investors are advised to monitor the RBI policy decision scheduled for Wednesday, August 05, 2026, which will likely dictate the short-term trajectory for banking and financial stocks as the market navigates the current interest rate environment.