Sensex, Nifty slide further on weak global cues
Key equity benchmark indices slipped further in afternoon trade, tracking weak global cues. Investor sentiment remained cautious after the Reserve Bank of India (RBI) raised the policy repo rate by 25 basis points to 5.50% and shifted its monetary policy stance to calibrated tightening. The rate hike was largely anticipated by market participants. Broader market indices also remained under pressure.
Barring Nifty Media and Nifty PSU Bank, all other sectoral indices were trading in the red. Nifty Auto, Nifty Metal, Nifty FMCG, Nifty IT and Nifty Oil & Gas were among the major sectoral laggards.
The RBI raised the repo rate by 25 basis points to 5.50%, citing heightened inflation risks amid elevated crude oil prices, global financial conditions and geopolitical uncertainties. The central bank also changed its policy stance to calibrated tightening from neutral. This marked the RBI's first repo rate hike since February 2023.
At 13:35 IST, the S&P BSE Sensex declined 452.58 points, or 0.62%, to 72,615.23, while the Nifty 50 index fell 174.75 points, or 0.77%, to 22,601.35.
In the broader market, the Nifty MidCap 150 index declined 0.64%, while the Nifty SmallCap 250 index fell 0.05%.
Market breadth remained negative. On the NSE, 1,415 shares advanced, while 2,058 shares declined and 101 shares were unchanged.
Buzzing Index:
The Nifty IT index fell 1.26% to 27,780.15, dragged lower by broad-based selling in IT stocks. Infosys (down 2.26%), HCL Technologies (down 2.03%), Wipro (down 1.80%), Coforge (down 1.37%) and LTM (down 1%) were the top losers among the index constituents. Mphasis (down 0.96%), Tech Mahindra (down 0.88%), Persistent Systems (down 0.84%) and Tata Consultancy Services (down 0.81%) also declined.
In contrast, Oracle Financial Services Software Ltd rose 1.52%, emerging as the lone gainer among the index constituents.
Stocks in Spotlight:
Kalyan Jewellers India added 4.28% after the jewellery retailer reported consolidated revenue growth of more than 26% year-on-year (YoY) in Q2 FY27, supported by strong operating momentum across its key markets. Revenue from the company's India operations grew approximately 27% YoY during the quarter, with same-store sales growth (SSSG) of around 20%, despite a high base in the year-ago period due to strong Navratri sales.
Kanohar Electricals surged 14.40% after the transformer manufacturer reported a 140.04% jump in standalone net profit to Rs 27.34 crore in Q1 FY27, compared with Rs 11.39 crore in Q1 FY26. Revenue from operations more than doubled to Rs 137 crore in Q1 FY27 from Rs 67 crore in Q1 FY26, registering a growth of 103.5% YoY.
Global Markets:
Dow futures were down around 111 points, indicating a negative opening in the US stocks today.
European and Asian shares declined on Wednesday, while mainland Chinese markets remained closed for a holiday. Elevated global government bond yields and geopolitical tensions weighed on investor sentiment, with oil prices also rising amid renewed concerns over Middle East supply disruptions.
Earlier, US President Donald Trump said the war with Iran would end ?the nice way or the not-so-nice way? and pointed to a recovery in oil shipments through the Strait of Hormuz. However, overall flows remained below pre-war levels, according to reports.
US stocks ended higher on Tuesday, 6 October 2026, with the S&P 500 and Nasdaq Composite closing at record highs as easing Treasury yields and relatively stable crude oil prices supported risk appetite. The focus has now shifted towards the Federal Reserve's meeting minutes due later on Wednesday and the upcoming third-quarter earnings season.
The Dow Jones Industrial Average gained 253.38 points, or 0.49%, to 51,521.28, while the S&P 500 rose 45.00 points, or 0.58%, to 7,818.93. The Nasdaq Composite advanced 122.48 points, or 0.45%, to 27,599.79. The S&P 500 and Nasdaq both closed at fresh record highs.
Technology and artificial intelligence-related stocks remained important drivers of the rally. Semiconductor shares including Advanced Micro Devices and Marvell Technology gained amid continued optimism over demand for chips and infrastructure supporting artificial intelligence applications. Nvidia also remained near a $6 trillion market valuation, highlighting the continuing strength of the AI investment theme.
The rally also received a boost from the energy sector. Constellation Energy surged after announcing a major long-term electricity agreement with Google. The deal covers 3,590 MW of power, including a 20-year agreement for 890 MW from nuclear capacity and a separate 15-year agreement covering 2,700 MW from Constellation's existing PJM assets. Constellation plans to invest more than $4.3 billion to increase output at 11 nuclear reactor units. The agreement highlights the growing demand for reliable electricity as technology companies expand energy-intensive data-centre and AI infrastructure.
The deal also reinforced investor interest in companies positioned to benefit from the increasing power requirements of AI data centres. Constellation shares rose more than 12% on Tuesday, while other nuclear and power-related stocks also advanced.
US Treasury yields eased from their recent highs, providing some relief to equity markets. The 10-year Treasury yield ended around 5.27%, down roughly 3 basis points, while the two-year yield declined to around 4.80%. The 10-year yield had climbed to about 5.35% on Monday, its highest level in more than two decades, increasing pressure on interest-rate-sensitive assets.
Meanwhile, the US trade deficit widened sharply in August to $105.6 billion, up 13.7% from the previous month and the largest since March 2025. The increase was driven largely by a jump in imports, including crude oil, semiconductors and other goods, with imports reaching a record level.
Powered by Capital Market - Live News