Market Uncertainty Halts Sensex and Nifty Rally: Investors Await Key Policy Decisions

Benchmark indices Sensex and Nifty ended nearly flat on Tuesday after a record-breaking rally as investors awaited further market triggers. The 30-share BSE Sensex dipped by 33.49 points, while the NSE Nifty rose slightly by 5.65 points. Investors are closely watching upcoming policy decisions and inflation data.

The benchmark equity indices Sensex and Nifty ended almost flat on Tuesday following a record-breaking rally, indicating investor caution amid awaited market triggers. The 30-share BSE Sensex dipped by 33.49 points, settling at 76,456.59 due to end-of-day selling, despite earlier gains of 370.45 points. Correspondingly, the NSE Nifty inched up marginally by 5.65 points to close at 23,264.85.

Following a period of notable rebound, the domestic market stabilized, with focus shifting back to global and internal indicators. Uncertainty around potential US rate cuts, propelled by strong U.S. job data, pushed US bond yields higher. Nonetheless, Foreign Institutional Investors (FIIs) have maintained a positive net buying stance.

Market participants are now gearing up for key policy decisions from the US Federal Reserve and the Bank of Japan, along with essential inflation data from the U.S. and India. Among the 30 Sensex companies, Kotak Mahindra Bank, Asian Paints, Reliance Industries, and others were major laggards, while Larsen & Toubro, Tata Motors, and Maruti posted gains.

Global indices showed varied performance: Seoul and Tokyo markets closed higher, whereas Shanghai and Hong Kong ended lower. European markets traded lower, while U.S. markets ended in positive territory. In other significant developments, Prime Minister Narendra Modi retained key ministers in his new government, ensuring continuity.