Sensex Falls 429 Points, Nifty Slips Below 22,650 After RBI Hikes Repo Rate

Indian equity benchmark indices ended lower on Wednesday, snapping a two-session winning streak after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.5 per cent and shifted its monetary policy stance to “calibrated tightening”.

The Sensex declined 429.11 points, or 0.59 per cent, to close at 72,638.70, while the Nifty fell 173.05 points, or 0.76 per cent, to settle at 22,603.05.

The RBI’s policy decision weighed on investor sentiment as market participants assessed the implications of a tighter interest rate environment.

Market experts said the Nifty slipped below the 22,700 level and closed near the key support of 22,600. A sustained break below this level could open the way towards 22,400, while 22,800 has emerged as the first resistance on a potential recovery.

Among Nifty constituents, Titan Company, BEL and Hindalco Industries were among the biggest laggards, weighing on the benchmark indices. Metal stocks witnessed particularly strong selling pressure, dragging the broader market lower.

In the broader market, the Nifty MidCap 100 index declined 0.63 per cent, while the Nifty SmallCap 100 bucked the trend and gained 0.30 per cent.

Among sectoral indices, the Nifty Metal index was the worst performer as investors reduced exposure to metal stocks. The Nifty PSU Bank index, meanwhile, outperformed other sectoral gauges and ended higher.

Analysts said investors would closely monitor the impact of the RBI’s policy measures on economic growth, liquidity conditions and corporate earnings in the coming months, particularly as the central bank focuses on containing inflationary pressures.

“Looking ahead, the market focus will turn to the September-quarter earnings season for further direction. A resilient macroeconomic backdrop supports headline expectations, but investors will watch management commentary closely for evidence on whether the companies can absorb rising input costs, retain pricing power and sustain demand through the second half of the fiscal year,” analysts said.