D-Street Extends Losses to Day 3 Ahead of RBI Policy Outcome, India VIX Surges

The domestic market saw selling for the third continuous session on Tuesday, a day in front of the RBI's December monetary policy result.

The equity benchmark indices Nifty50 finished 0.31% lower underneath the 18,650 mark, while Sensex slipped 0.33% or 208.24 points, with the tension applied from IT, metal and pharma stocks, while PSU banking and FMCG stocks offered help to the market.

Everyone's eyes have turned towards the RBI's policy meeting declaration due on Dec 7, with analysts broadly expecting a 25-35 bps interest rate hike by the central bank in the midst of facilitating food costs, falling commodity costs and bringing down of expansion in both India and the US.

On the sectoral indices front, all indices with the exception of Nifty PSU Bank and Nifty FMCG finished losing money. Nifty IT failed 1.45%, while Nifty PSU Bank bounced 1.26% and recorded a new 52-week high on Tuesday. Nifty Bank finished 0.45% lower.

The market unpredictability gauge India VIX acquired 2.25% to 14.04, while the Indian rupee tumbled to its most reduced peak in over of two months in the midst of possibilities of dollar surges after worries of the Government Stores raising interest rates forcefully increased following a surprisingly good US services industry action in November 2022.