Benchmark equity indices ended lower on Tuesday, 4 August, snapping a four-session winning streak as investors adopted a wait-and-watch stance ahead of the Reserve Bank of India (RBI) monetary policy announcement due on Wednesday. The BSE Sensex declined 210.08 points, or 0.27%, to settle at 78,428.95, while the Nifty50 shed 159.40 points, or 0.64%, to close at 24,614.90.

Intraday Movement and Technical Levels

The Nifty50 drifted lower through the session, slipping toward the 24,400 support zone and touching an intraday low of 24,428. A partial recovery attempt from lower levels failed to sustain, with the index facing selling pressure near the 24,500 zone — reinforcing it as the immediate resistance level.

Analysts noted that a sustained break below 24,400 could accelerate profit-booking and pull the index toward the next support at 24,300. '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,' one analyst said. '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,' the analyst added.

Sectoral Laggards and Top Losers

Weakness was broad-based across key sectors. Nifty Realty was the worst-performing sectoral index, falling more than 2%, as real estate stocks saw significant selling pressure. The Nifty FMCG, Nifty Private Bank, and Nifty Bank indices also ended in the red.

Among individual Nifty constituents, Grasim Industries, HDFC Life Insurance Company, and Hindustan Unilever emerged as the top laggards, exerting the most pressure on the benchmark index. Banking, financial, and IT stocks collectively weighed on overall market sentiment.

Broader Market Performance

Performance in the broader market was mixed. The Nifty MidCap index declined 0.29%, while the Nifty SmallCap index managed to buck the trend, closing 0.23% higher — suggesting selective buying interest at the smaller-cap end even as large-caps retreated.

What Markets Are Watching Next

Market participants are now squarely focused on the RBI's policy verdict on Wednesday, with close attention to the central bank's stance on interest rates, inflation, and liquidity conditions. The outcome is expected to set the directional tone for equities in the near term. This comes after four consecutive sessions of gains, suggesting the pullback is largely pre-policy caution rather than a fundamental shift in sentiment. The central bank's commentary on economic growth will be equally scrutinised alongside any rate decision.