SENSEX, NIFTY50 resume decline after a two-day breather as RBI hikes repo rate

The Indian equity benchmarks resumed their downward journey after two days of pause as sentiment tuned negative after the Reserve Bank of India (RBI) increased interest rates for the first time since February 2023 and changed policy stance from neutral to calibrated tightening. The SENSEX fell as much as 599 points and NIFTY50 index touched an intraday low of 22,546.

The SENSEX ended 429 points lower at 72,639 and NIFTY50 index dropped 173 points to close at 22,603.

A calibrated tightening policy stance means that a central bank has taken interest rate cuts off the table for the foreseeable future while signalling that any future rate hikes will be applied gradually and selectively rather than at every single meeting, analysts said.

Surging crude prices in global markets also impacted the sentiment negatively as Brent Crude futures for delivery in December rose 1.5% to $102 per barrel.

Back home, 12 of 15 major sector gauges compiled by the National Stock Exchange (NSE) ended lower led by the NIFTY Metal index's 2.2% fall. NIFTY Auto, FMCG, IT, Metal, Pharma, Realty, Healthcare, Consumer Durable and Oil & Gas indices also fell between 0.5% and 1.77%.

On the other hand, PSU banking, and media shares witnessed buying interest.

Broader markets ended on a mixed note as NIFTY Midcap 100 index declined 0.6% while NIFTY Smallcap 100 index advanced 0.3%.

Shares of several newly listed companies, including Asset Reconstruction Company India (ARCIL), Glass Wall Systems, Kanohar Electricals and Veegaland Developers, were in the spotlight as they reported their earnings for the first quarter of the 2026-27 financial year (Q1 FY27).

Dilip Buildcon shares jumped as much as 3.5% to touch an intraday high of ₹415.2 after the firm bagged an order from the Petroleum and Natural Gas Regulatory Board (PNGRB).

Titan was top loser in the NIFTY50 index, the stock fell 3.8% to close at ₹4,377 after its quarterly business updates for Q2 failed to enthuse investors.

Adani Enterprises, Hindalco, Bharat Electronics, JSW Steel, Infosys, Asian Paints, Mahindra & Mahindra, Adani Ports, Larsen & Toubro, Shriram Finance and Tata Steel also fell between 1.6% and 3.75%.

On the flip side, Kotak Mahindra Bank, BSE, Bharti Airtel ICICI Bank, Coal India, Max Healthcare, HDFC Life and Bajaj Finance were notable gainers in the NIFTY50 index.

The overall market breadth was negative as 2,043 shares ended lower while 1,549 closed higher on the NSE.