Benchmark indices, Sensex and Nifty, settled Tuesday's trade sharply lower as rising crude oil prices and a firm dollar spooked the street a day ahead of the RBI policy decision.

Stock Market Highlights: Indian equity benchmarks BSE Sensex and NSE Nifty50 extended losses to a third straight day on Tuesday amid weakness across most sectors, as concerns persisted among investors globally on inflation and aggressive hikes in COVID-era interest rates. Financial, IT and FMCG shares were the biggest drags on headline indices. Broader markets also weakened, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling around half a percent each. All eyes were on the outcome of a key RBI policy meeting due this week.

Paytm shares rose on Tuesday to halt a three-day losing streak after JPMorgan said a reduction in adjusted operating loss with better cost controls will be a key fundamental driver for the stock. The gain came even as the brokerage lowered its target price for the One97 stock by nearly 17 percent.

The India VIX has stayed above 20 for five weeks in a row. During lesser volatile periods, the VIX usually ranges between 15-17, and goes as low as 12-13 during periods of extreme calm. Here's what it means for you.