India's equity benchmarks opened flat on Wednesday as the Reserve Bank of India (RBI) began its three-day monetary policy meeting. Investors are cautious, bracing for a widely anticipated rate cut to boost growth.

On February 4, Indian stock market benchmarks Sensex and Nifty 50 gained over 1%, turning positive for the year, despite concerns about weak quarterly earnings and foreign capital outflows.

Market experts believe that while the budget had some positive aspects, certain key areas did not meet expectations.

Indian benchmark indices The Sensex and Nifty surged in the second half of Tuesday, closing nearly 2 per cent higher after the US paused its planned tariffs on Canada and Mexico, providing temporary relief from escalating trade tensions.