Benchmark equity indices experienced a decline, snapping a two-day winning streak as market participants adopted a cautious approach ahead of the highly anticipated interest rate cut from the US Federal Reserve. This would mark the first rate cut since 2020, following a series of eight consecutive meetings where rates remained unchanged. The India VIX, a measure of market volatility, increased by 6.2%, closing at 13.37.

Information technology stocks significantly impacted the indices, contributing to the overall downturn, while finance stocks exhibited mixed performance. As investors closely monitor the developments surrounding the potential rate cut, the market sentiment remains tentative.