It was widely anticipated that the RBI will deliver a rate cut and, hence, the market has not reacted much to the rate cut, said an analyst.

RBI trimmed its GDP target for Q1 of FY26 to 6.7% from earlier 6.9%, and the target was lowered to 7% for Q2 compared to 7.3%. For Q3 and Q4, RBI expects GDP growth at 6.5% each for FY26.

Sensex dropped 87 points to 77,970.84, while Nifty slipped to 23,570.75 as investors remain cautious ahead of the RBI MPC meeting.