The domestic equity barometers ended with limited losses after a volatile session on Tuesday. The Nifty settled below the 17,750 mark after hitting the day's high of 17,811.15 in early trade. The barometer index, the S&P BSE Sensex declined 220.86 points or 0.37% to 60,286.04. The Nifty 50 index lost 43.10 points or 0.24% to 17,721.50. In the broader market, the S&P BSE Mid-Cap index rose 0.02% while the S&P BSE Small-Cap index slipped 0.16%. The market breadth was negative.

Among the sectoral indices, the S&P BSE Realty index (up 0.77%), the S&P BSE Capital Goods index (up 0.49%) and the S&P BSE Bankex (up 0.29%) outperformed the benchmark Sensex. The S&P BSE Metal index (down 1.89%), the S&P BSE Telecommunication index (down 1.31%) and the S&P BSE Utilities index (down 1.15%) underperformed the benchmark Sensex.

The RBI policy review meeting began on 6 February and concludes on 8 February 2023. The central bank is projected to raise the repo rate but at a slower pace. In its December monetary policy committee meeting, the RBI raised the policy repo rate by 35 basis points (bps) to 6.25%.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined to 7.314 from its close of 7.32 recorded in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.7250, compared with its close of 82.7600 during the previous trading session.

MCX Gold futures for 3 April 2023 settlement advanced 0.26% to Rs 57,101.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 103.59

The United States 10-year bond yield declined 0.20% to 3.625.

In the commodities market, Brent crude for March 2023 settlement advanced $1.53 or 1.89% to $82.52 a barrel.

Global Markets:

Markets in Europe advanced while Asian stocks ended mixed on Tuesday, as investors digested the Reserve Bank of Australia's interest rate hike of 25 basis points, which was in line with expectations.

US stocks ended lower on Monday as investors shifted gears after considering the possibility that the Federal Reserve may take longer to start cutting interest rates.

Traders are keeping a close eye on speeches by Fed officials this week, including Chair Jerome Powell on Tuesday, for any change in the central bank's rhetoric after data last week showed services activity was strong in January as well as strong job growth.