Indian equity markets finished lower on Tuesday, with benchmark indices retreating as traders stayed cautious ahead of the Reserve Bank of India policy decision. The weak close reflected a risk-off mood in the market, with investors avoiding aggressive positions before a key central bank announcement.
By the closing bell on August 4, 2026, the Sensex had fallen 210.08 points to settle at 78,428.95. The Nifty also ended in the red, dropping 159.40 points to close at 24,614.90. The decline showed broad nervousness rather than a strong directional move driven by a single trigger.
Market sentiment was pressured by several factors at once. Apart from caution before the RBI outcome, traders were also digesting adjustments linked to the new F&O closing-auction mechanism. Rising crude oil prices added another layer of concern, as higher energy costs can affect inflation expectations and corporate margins.
Overall, the session pointed to a defensive tone in Indian equities, with participants choosing to stay measured until there is more clarity on monetary policy and near-term market mechanics. The lower finish in both the Sensex and Nifty highlighted how global commodity trends and domestic policy expectations continue to shape daily trading sentiment.
