Indian equity markets opened sharply lower on Tuesday, tracking weak global cues amid escalating tariff tensions and reacting to the Reserve Bank of India’s dovish monetary policy announcement.
The Sensex plunged 439.37 points or 0.59% to 73,787.71, while the Nifty 50 shed 158.55 points or 0.70% to 22,377.30 at 10:14 AM. Market breadth was heavily skewed towards bears, with 2,143 shares declining, 837 advancing, and 136 remaining unchanged.
Sentiment soured further after the RBI’s Monetary Policy Committee (MPC), in a unanimous move, cut the repo rate by 25 basis points to 6.00%, its second cut this year, and shifted its policy stance from ‘neutral’ to ‘accommodative’. The central bank also downgraded the GDP growth forecast for FY26 to 6.5%, from 6.7%, citing global economic headwinds and trade protectionism.
RBI Governor Sanjay Malhotra noted that inflation appears benign, with CPI inflation for FY26 now expected at 4.0%, down from 4.2% earlier. However, the policy actions, combined with the impact of 26% U.S. tariffs on Indian exports and ongoing global uncertainty, weighed heavily on investor sentiment.
The market correction also comes on the day of Nifty’s weekly expiry, adding to volatility.
Investors are expected to remain cautious amid concerns over the rupee’s stability, bond market reaction, and further signals from global central banks in response to rising trade tensions.
