Indian Stocks Pull Back after RBI Hike

2026-10-07 10:43 By Andre Joaquim 1 min. read

Indian shares closed firmly lower on Wednesday with broad pressure from most sectors after the Reserve Bank of India raised its benchmark policy rate by 25 bps, as expected.

The S&P/BSE Sensex fell 0.6% to 72,639 and the NSE Nifty 50 dropped 0.8% to 22,603.

It was the RBI's first rate increase in over three years, warranted by a rebound in the outlook for inflation and mounting pressure on the rupee driven by capital outflows and surging energy import costs.

The increase in borrowing costs is likely to weigh on credit demand and impact earnings, with index heavyweights Titan, Asian Paints, Larsen & Toubro, Tata Steel, and Adani Ports falling between 2% and 4%.

Tech also fell following a pullback in US equity markets, with Infosys and HCL Tech down around 2% each.

On the other hand, state and private banks outperformed, closing near the flatline in aggregate.



News Stream
Indian Stocks Pull Back after RBI Hike
Indian shares closed firmly lower on Wednesday with broad pressure from most sectors after the Reserve Bank of India raised its benchmark policy rate by 25 bps, as expected. The S&P/BSE Sensex fell 0.6% to 72,639 and the NSE Nifty 50 dropped 0.8% to 22,603. It was the RBI's first rate increase in over three years, warranted by a rebound in the outlook for inflation and mounting pressure on the rupee driven by capital outflows and surging energy import costs. The increase in borrowing costs is likely to weigh on credit demand and impact earnings, with index heavyweights Titan, Asian Paints, Larsen & Toubro, Tata Steel, and Adani Ports falling between 2% and 4%. Tech also fell following a pullback in US equity markets, with Infosys and HCL Tech down around 2% each. On the other hand, state and private banks outperformed, closing near the flatline in aggregate.
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