Mumbai, Feb. 5 -- The key equity benchmarks closed lower on Wednesday, weighed down by weakness in heavyweight stocks as the US-China trade war escalated. Investors are also focused on the Reserve Bank of India's (RBI) monetary policy meeting, which began today under the new central bank governor. The market widely expects a rate cut when the meeting concludes on Friday.

The Nifty settled below the 23,700 level. While metal and PSU bank shares saw demand, realty, FMCG, and consumer durable shares declined.

Investors are currently assessing the positive domestic outlook, driven by a favorable budget, against ongoing global uncertainties stemming from the trade war. Declining US bond yields and lower crude oil prices have provided some su...