Stock Market Today (4 August 2026): Sensex and Nifty Fall Ahead of RBI Policy as Financial and IT Stocks Drag Markets

The Indian stock market closed lower on 4 August 2026, ending its four-session winning streak as investors booked profits ahead of the Reserve Bank of India's monetary policy decision. Weakness in financial and information technology stocks weighed on the benchmark indices, while uncertainty surrounding the recently introduced Closing Auction Session (CAS) also contributed to market volatility.

The BSE Sensex closed at 78,428.95, down 210.08 points (0.27%), while the Nifty 50 settled at 24,614.90, losing 159.40 points (0.64%). Despite the decline in benchmark indices, broader market participation remained relatively balanced as small-cap stocks managed to outperform during the session.

Market Highlights

The market opened on a cautious note and remained volatile throughout the day.

Benchmark indices ended lower after four consecutive sessions of gains.

Investors preferred to reduce positions ahead of the RBI monetary policy announcement.

The India VIX moved higher, indicating increased market volatility.

Small-cap stocks remained relatively resilient, while mid-cap stocks closed with modest losses.

Best Performing Sectors

Although most sectors ended in negative territory, a few individual stocks and select segments managed to outperform.

Healthcare stocks witnessed selective buying during the session.

Some consumption-related companies also remained relatively stable despite the overall weakness in the market.

Hindalco Industries, Trent, Apollo Hospitals and Jio Financial Services were among the notable gainers during the trading session.

Weak Performing Sectors

The Financial Services sector remained under pressure throughout the day.

Information Technology stocks witnessed profit booking after their recent rally.

Private banking stocks also traded lower as investors adopted a cautious approach before the RBI policy announcement.

Most sectoral indices closed in negative territory, reflecting broad-based selling.

Top Gainers

Some of the major gainers during the session included:

• Hindalco Industries
• Trent
• Apollo Hospitals
• Jio Financial Services
• Eternal

These stocks outperformed the broader market due to company-specific buying and investor confidence.

Top Losers

The major laggards during the session included:

• LIC
• Reliance Industries
• HDFC Bank
• Grasim Industries
• Bajaj Auto
• HDFC Life

LIC witnessed a sharp decline after the government announced an Offer for Sale (OFS), while heavyweight stocks such as Reliance Industries and HDFC Bank also remained under pressure.

What Drove the Market?

RBI Monetary Policy

Investors remained cautious ahead of the Reserve Bank of India's policy decision, resulting in reduced buying activity across major sectors.

Selling in Financial and IT Stocks

Heavy selling in banking, financial services, and information technology companies dragged benchmark indices lower.

Closing Auction Session (CAS)

The recently introduced Closing Auction Session continued to create uncertainty among traders and contributed to higher market volatility during the final minutes of trading.

Profit Booking

After four consecutive sessions of gains, investors booked profits in several large-cap stocks, limiting further upside.

What to Watch Next

The RBI's monetary policy announcement will remain the biggest trigger for the market.

Investors will continue tracking quarterly earnings from major listed companies.

Foreign Institutional Investor (FII) activity and crude oil prices will remain important indicators for market direction.

Global market sentiment and inflation-related developments are also expected to influence investor confidence.

Investor Outlook

Despite today's decline, market experts believe the broader long-term outlook for Indian equities remains positive. The correction was largely driven by caution ahead of the RBI policy and profit booking rather than any major deterioration in economic fundamentals.

Long-term investors should continue focusing on fundamentally strong businesses, while short-term traders should remain cautious until policy-related uncertainty subsides.

Conclusion

The Indian stock market ended lower on 4 August 2026 as investors booked profits ahead of the RBI monetary policy announcement. Selling in financial and IT stocks, combined with uncertainty around the new Closing Auction Session, kept benchmark indices under pressure.

Going forward, RBI policy decisions, quarterly earnings, foreign investor activity, and global market developments are expected to determine the near-term direction of Indian equities.