Nifty Slips Below 24,600 While Sensex Holds Flat; Over 130 Q1 Results and Global Cues Drive Market Sentiment

Indian equity markets traded on a cautious note on Tuesday as investors refrained from taking aggressive positions ahead of the Reserve Bank of India's Monetary Policy Committee (MPC) outcome and closely tracked global geopolitical developments, particularly the ongoing discussions between the United States and Iran. While the benchmark indices witnessed mixed movement, stock-specific action remained robust as the June-quarter earnings season gathered pace.

At around 11:00 AM, the BSE Sensex was trading almost unchanged at 78,641.65, up just 2.62 points, while the Nifty 50 declined 200.10 points (0.81%) to 24,574.20, slipping below the psychologically important 24,600 mark.

Investors Adopt Wait-and-Watch Strategy Ahead of RBI Policy

Market participants largely stayed on the sidelines ahead of the RBI's monetary policy announcement, which is expected to provide fresh guidance on interest rates, inflation and liquidity conditions. The central bank's commentary on domestic economic growth, inflation trajectory and global uncertainties will be closely monitored by institutional and retail investors alike.

Apart from the policy decision, traders are also keeping an eye on developments in the US-Iran negotiations, as any major breakthrough or escalation could have a direct impact on crude oil prices and global financial markets.

Broader Markets Display Resilience Despite Benchmark Weakness

Unlike the benchmark indices, the broader market displayed relative resilience during the session.

• Nifty MidCap Index: Down 0.15%

• Nifty SmallCap Index: Up 0.67%

The outperformance of small-cap stocks suggests that investors continue to identify opportunities in select sectors despite overall market caution. Analysts believe stock-specific buying driven by earnings expectations has helped the broader market outperform frontline indices.

Sectoral Performance Remains Mixed

Sector-wise trading reflected a mixed trend throughout the morning session.

Top Performing Sector

• Nifty Metal

Weakest Performing Sectors

• Nifty Realty

• Nifty Cement

Technology stocks also witnessed selling pressure, with LTM, Infosys, and Persistent Systems emerging among the major losers in the Nifty IT index as investors booked profits after recent gains.

Heavyweight Stocks Drag Nifty Lower

Selling pressure in several heavyweight stocks kept the benchmark under pressure.

Among the top losers on the Nifty 50 were:

• Grasim Industries

• Bajaj Auto

• Titan Company

Weakness in these large-cap stocks offset gains witnessed in select metal and shipping counters.

Corporate Earnings Continue to Drive Stock-Specific Action

The ongoing June-quarter earnings season remained the biggest driver of individual stock movement.

Ather Energy Surges Nearly 18%

Shares of Ather Energy rallied nearly 18% after the electric two-wheeler manufacturer reported a sharp improvement in its financial performance. The company narrowed its quarterly net loss to ₹51 crore, compared with ₹178 crore in the corresponding quarter of the previous financial year, boosting investor confidence.

Great Eastern Shipping Climbs 14%

Great Eastern Shipping jumped over 14% after announcing a strong set of quarterly numbers. The company reported a net profit of ₹1,309 crore for the April-June quarter, more than doubling from ₹505 crore recorded during the same period last year.

Dabur Faces Regulatory Action

Shares of Dabur India remained in focus after the Food Safety and Standards Authority of India (FSSAI) directed the company to discontinue selling food products carrying "100%" claims, stating that such marketing claims could mislead consumers. The development may keep the FMCG stock under investor scrutiny in the coming sessions.

More Than 130 Companies to Announce Q1 Results Today

Tuesday marks one of the busiest days of the earnings season, with over 130 listed companies scheduled to announce their financial results for the first quarter of FY27.

Some of the prominent companies reporting earnings include:

• Bharti Airtel

• ONGC

• Pidilite Industries

• Marico

• MCX

• NHPC

• Godrej Properties

• Deepak Nitrite

• Kalyan Jewellers India

• Bharti Hexacom

• Metro Brands

• PNB Housing Finance

• Timken India

• United Breweries

• UNO Minda

• Zydus Wellness

• Emami

• Castrol India

• Graphite India

• Greaves Cotton

The earnings announcements are expected to generate significant stock-specific volatility throughout the trading session.

Wealth Managers See AI Driving Capital Market Growth

In a separate industry development, Motilal Oswal Wealth Management stated that Artificial Intelligence (AI), Open Finance and the Account Aggregator ecosystem are likely to drive the next phase of growth in India's capital markets. The firm believes digital innovation will enhance customer engagement, improve investment accessibility and transform wealth management over the coming years.

Market Outlook

Indian markets are likely to remain volatile for the remainder of the session as investors await the RBI's policy outcome and digest a flood of corporate earnings. While weakness in heavyweight stocks has weighed on benchmark indices, resilience in the broader market suggests that buying interest continues in select sectors and quality companies.

Going forward, the RBI's policy commentary, management guidance from major companies and global developments—including movements in crude oil prices and geopolitical events—will determine the near-term direction of the domestic equity market.