Nifty ends below 22,650 as RBI rate hike, weak global cues weigh on sentiment

The key equity indices ended with significant losses on Wednesday, 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. The Nifty closed below the 22,650 mark, with banking stocks providing some support. Meanwhile, metal and auto stocks declined.

The S&P BSE Sensex declined 429.11 points or 0.59% to 72,638.70. The Nifty 50 index fell 173.05 points or 0.76% to 22,603.05. In the past two consecutive sessions, the Sensex and Nifty have jumped 1.61% and 1.58%, respectively.

Infosys (down 2.16%), Larsen & Toubro (down 1.82%) and HDFC Bank (down 1.22%) were major Nifty drags today.

In the broader market, the BSE 150 MidCap Index fell 0.64% and the BSE 250 SmallCap Index shed 0.02%.

The market breadth was negative. On the BSE, 2,013 shares rose and 2,360 shares fell. A total of 248 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.25% to 13.93.

RBI hikes repo rate by 25 bps:

The RBI Monetary Policy Committee (MPC) unanimously raised the repo rate by 25 basis points to 5.50% from 5.25%, in line with expectations, after its three-day meeting on 5-7 October. The RBI raised the repo rate for the first time in nearly three years and changed its policy stance from neutral to calibrated tightening. The Standing Deposit Facility (SDF) rate was raised to 5.25%, while the Marginal Standing Facility (MSF) rate and bank rate remained unchanged at 5.75%.

Numbers to Track:

In the commodities market, Brent crude for December 2026 settlement jumped $1.35 or 1.34% to $101.93 a barrel.

The United States 10-year bond yield advanced 0.89% to 5.315.

The yield on India's 10-year benchmark federal paper advanced 0.33% to 7.222 compared with the previous session close of 7.198.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 96.7850 compared with its close of 96.3575 during the previous trading session.

MCX Gold futures for 4 December 2026 settlement shed 0.40% to Rs 1,51,800.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.44% to 102.28.

Global Markets:

Dow futures were down 252 points, indicating a negative opening in the US stocks today.

European market declined after IMF managing director Kristalina Georgieva said France needs to reduce its budget deficit to restore confidence in its fiscal credibility and reassure bond markets.

Asian shares ended lower 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.

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.

Stocks in Spotlight:

Titan Company fell 3.80% after the company reported its provisional business update for Q2 FY27. The company said its consumer businesses recorded 25% year-on-year growth during the quarter ended 30 September 2026. It added 78 net stores during the quarter, taking its combined retail network to 3,758 stores. The jewellery business saw a moderation in growth from 39% in Q1 FY27 to around 21% in Q2 FY27.

Kalyan Jewellers India added 3.80% 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.

Bharti Airtel rose 1.29% after announcing new postpaid plans with a Rs 50 increase in monthly rentals, effective 8 October 2026, while offering one complimentary international roaming trip per SIM every year. The plans range from Rs 499 to Rs 1,799 and include unlimited data and calling, spam and fraud protection, entertainment subscriptions and other benefits. The free five-day international roaming pack provides 5GB of data, 60 minutes of calls, 25 outgoing SMS and free incoming SMS.

Kanohar Electricals surged 13.99% 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.

Utkarsh Small Finance Bank rose 3.40% after the bank reported a 54.9% year-on-year increase in total disbursements to Rs 3,525 crore in Q2 FY27. Total disbursements rose 4.6% quarter-on-quarter (QoQ) from Rs 3,370 crore in Q1 FY27. Non-Joint Liability Group (JLG) disbursements grew 94.2% YoY to Rs 2,602 crore, while JLG disbursements declined 1.3% to Rs 923 crore.

Asset Reconstruction Company (India) (ARCIL) hit the upper circuit of 10% after the company reported a 54.15% year-on-year (YoY) increase in consolidated net profit to Rs 89.15 crore in Q1 FY27 from Rs 57.83 crore in Q1 FY26. Revenue from operations jumped 115.35% YoY to Rs 234.74 crore in the quarter ended 30 June 2026.

PTC Industries rallied 7.11% after the company announced the launch of its qualified institutional placement (QIP) with a floor price of Rs 22,150 per equity share. The floor price of Rs 22,150 per share represents a discount of 4.21% over the scrip?s previous closing price of Rs 23,124.10 on the BSE.

Larsen & Toubro (L&T) fell 1.82%. The company announced that its subsidiary L&T Energy CarbonLite Solutions has secured a Limited Notice to Proceed (LNTP) from DVC CIL Power (DVCCIL) for the main plant package of the 2x800 MW Chandrapura thermal power plant in Jharkhand.

Marsons surged 11.09% after the company announced plans to form a joint venture with Cleanhill Partners to expand transformer distribution, servicing and manufacturing operations in the US and Canada.

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