Nifty 50
Nifty drops 179 points as RBI hikes repo rate and signals tighter policy ahead
The NSE Nifty 50 fell 178.90 points, or 0.79 per cent, to 22,597.20 in mid-session trade on Wednesday after the Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.50 per cent. The BSE Sensex also declined, slipping 422.97 points, or 0.58 per cent, to 72,644.84 at 1.44 pm. The RBI shifted its policy stance from neutral to calibrated tightening, indicating that rate cuts are unlikely in the near term.
Alongside the rate hike, the central bank raised its FY2027 inflation forecast to 5.2 per cent from 5.0 per cent and lifted its GDP growth projection to 7.1 per cent from 6.7 per cent. These revisions contributed to market caution, with investors assessing the implications of a higher-for-longer interest rate environment.
Banking stocks showed relative resilience, with Kotak Mahindra Bank leading Nifty gainers at ₹440.45, up 1.98 per cent. BSE Ltd and Bharti Airtel also advanced, gaining 1.85 per cent and 1.84 per cent respectively. Bajaj Finance and ICICI Bank posted modest gains of 0.67 per cent and 0.60 per cent.
According to SBI Securities, Bharti Airtel, Kotak Mahindra Bank, and ICICI Bank were the top three positive contributors to the Nifty. Nifty Media emerged as the best-performing sectoral index, while Nifty Auto lagged the most.
Selling pressure was evident in consumer discretionary, metals, and financial services. Titan Company fell the most among Nifty constituents, declining 3.75 per cent to ₹4,379.30. Shriram Finance and Adani Enterprises each dropped 3.08 per cent, while Hindalco Industries and JSW Steel lost 2.46 per cent and 2.41 per cent respectively.
Market breadth on the BSE remained weak, with 2,377 stocks declining against 1,834 advances out of 4,470 traded. A total of 152 stocks hit 52-week highs, while 140 touched 52-week lows. Upper circuit stocks numbered 207, compared to 190 in the lower circuit.
The 10-year government bond yield hardened by 5–6 basis points following the announcement, trading around 7.25 per cent. Analysts noted that the shift to calibrated tightening, while modest in size, signaled a change in the RBI’s reaction function, preparing markets for prolonged policy tightness.
SBI Securities identified Nifty support at 22,530–22,550 and resistance at 22,840–22,860, with a potential move toward 23,010 if the index breaks decisively above 22,860. Crude oil prices stayed elevated, with WTI above $90 a barrel and Brent above $100, while COMEX gold slipped 0.51 per cent to $4,165.90. The Indian rupee remained steady at ₹96.36 against the US dollar.
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