The 30-share BSE Sensex fell 197.97 points or 0.25 per cent to end the session at 77,860.19. The NSE Nifty 50 index settled 43.40 points or 0.18 per cent lower at 23,559.95.

The Nifty 50 has dropped 4.4 per cent since the last policy meeting in December, impacted by weak corporate earnings and a slowing economy.

Investors expect the Reserve Bank of India (RBI) will ease policy, with Governor Sanjay Malhotra's inaugural monetary policy review in the spotlight

Highlight: Broader markets also mirrored benchmarks, with Nifty Midcap100, and Nifty Smallcap100 ending down by 1.26 per cent and 0.30 per cent, respectively

In his first monetary policy review, RBI Governor Sanjay Malhotra is widely expected to reduce rates to spur economic growth. As a monetary policy tool, the RBI adjusts the repo rate to influence liquidity in the economy.

The Indian stock market closed in negative territory on Tuesday, with the Sensex declining by 213.12 points to settle at 78,058.16, while the Nifty slipped 92.95 points to end at 23,603.35. Market sentiment remained cautious as investors awaited the Reserve Bank of India's (RBI) policy decision,

The Indian benchmark indices Sensex and Nifty closed lower on Thursday as investors remained cautious ahead of key corporate earnings reports and the Reserve Bank of India's important rate decision on Friday.