Indian equity markets are trading lower as investors position themselves ahead of the Reserve Bank of India's upcoming monetary policy decision.
Rate-sensitive sectors, including financials and real estate, are seeing heightened selling pressure as traders weigh the likelihood of a policy shift.
The benchmark Sensex and Nifty 50 have reversed gains from the previous session, reflecting cautious sentiment.
The decline marks a continuation of recent volatility, with the Nifty 50 slipping significantly from its opening mark.
Market participants are closely monitoring the central bank's stance on inflation and growth, which will likely dictate near-term direction for domestic equities.
This pullback follows a sharp rally earlier in the week, highlighting the market's sensitivity to macroeconomic signals.