Sensex drops 429 pts,Nifty below 22,610 amid RBI rate hike

The Indian share market ended ended lower in a volatile session on Wednesday, after the RBI raised the repo rate by 25 bps to 5.50%, its first hike since February 2023.The RBI raised its FY27 GDP growth forecast to 7.1% from 6.7%, while lifting the inflation projection to 5.2% from 5%.At close, the Sensex was down 429.11 points or 0.59 percent at 72,638.70, and the Nifty was down 173.05 points or 0.76 percent at 22,603.05.
Kotak Mahindra Bank, BSE Limited, Bharti Airtel, ICICI Bank and Coal India were the top gainers on the Nifty, while, losers included Titan Company, Adani Enterprises, Hindalco Industries, JSW Steel, Bharat Electronics.On the sectoral front,except media and PSU Bank, all other indices ended in the red with FMCG, IT, auto, metal, realty down 1-2%.Broader indices ended mixed with Nifty Midcap index falling 0.6%, and smallcap index gaining 0.3%, according to agency reports.
Rupee Close:
On 7 Oct'26,the Indian rupee slumped 43 paise to close at 96.78 (provisional) against the US dollar on Wednesday, after the Reserve Bank of India raised the key benchmark policy rate by 25 basis points to 5.5 per cent.Market analysts said the RBI’s rate hike reflects rising cyclical inflation risks, while the shift in stance to ‘calibrated tightening’ alongside higher growth and inflation projections highlights the MPC’s hawkish approach.
Trading Guide:
Market experts recommended to buy these stocks on Wednesday:Zensar Technologies,Netweb Technologies India,Titan Company and Mphasis.

(Business Correspondent)