Equity benchmark indices fell on Wednesday, ending two days of gains after the Reserve Bank of India raised its repo rate by 25 basis points to 5.5 percent and adopted a ‘calibrated tightening’ stance, dampening investor sentiment. The Sensex dropped 429.11 points, or 0.59 percent, to close at 72,638.70, while the Nifty fell 173.05 points, or 0.76 percent, to 22,603.05.
Analysts noted that the Nifty fell below 22,700 and closed near the key 22,600 support level. A sustained break below this threshold could push the index toward 22,400, while 22,800 remains the first recovery hurdle. Investors remain cautious after the RBI’s move, which signals a tighter interest‑rate environment ahead.
Among the Nifty constituents, Titan Company, BEL and Hindalco Industries were the biggest laggards, dragging the benchmark lower. Metal stocks in particular saw heavy selling, contributing to the broader market decline. The Nifty MidCap 100 index slipped 0.63 percent, reflecting weakness in mid‑size stocks, while the Nifty SmallCap 100 index gained 0.30 percent, bucking the trend.
Market participants will likely focus on the September‑quarter earnings season for further direction, while monitoring the RBI’s policy impact on growth, liquidity and corporate earnings. Analysts say a resilient macro backdrop supports headline expectations, but investors will scrutinize management commentary for signs that companies can absorb rising input costs, maintain pricing power and sustain demand in the second half of the fiscal year.
