Domestic benchmark indices fell on Thursday, October 8, as the Reserve Bank of India’s rate hike triggered market concerns. The Nifty 50 fell 0.76% to 22,424.70, while the BSE Sensex fell 0.63% to 72,187.97. Rising crude oil prices also added to inflation worries, though the IT sector showed some gains.
The domestic benchmark indices extended their losses on Thursday, October 8, after the Reserve Bank of India's hawkish rate hike raised concerns over tighter financial conditions, while rising crude oil prices added to inflation worries.
The Nifty 50 fell 0.76% to 22,424.70, while the BSE Sensex declined 0.63% to 72,187.97, as of 10:39 IST.
The sell-off was broad-based, with 14 of the 16 major sectoral indices trading lower. The broader market also came under pressure, with both the Nifty Midcap and Smallcap indices falling around 0.8% each.
However, the IT sector bucked the broader trend, gaining 1.8%, led by a 2.5% rise in Tata Consultancy Services (TCS) ahead of its September-quarter earnings announcement later in the day.
The decline comes a day after the Nifty and Sensex snapped a two-session winning streak on Wednesday, following the RBI's decision to raise the benchmark repo rate by 25 basis points to 5.5%. The hike marked the central bank's first rate increase in nearly four years, as it sought to address mounting inflationary pressures amid strong economic growth.