Sensex, Nifty decline after RBI hikes repo rate; Sensex falls nearly 430 points
Mid-Day 1 hr ago·7 Oct 2026, 12:20 pm
India's key stock indices, Sensex and Nifty, fell sharply on Monday as the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 6.5%. This is the second consecutive rate hike this year, aimed at cooling inflation. The broader market followed suit, with the Sensex dropping nearly 430 points and the Nifty losing over 130 points. The move signals the central bank's continued focus on price stability despite global economic uncertainties.
For investors, this hike means borrowing costs are likely to rise further. Banks and financial institutions may see their net interest margins improve, but sectors like real estate and automobiles, which are sensitive to interest rates, could face pressure. The move also adds to global volatility, as investors weigh the impact of tighter monetary policy on growth.
Investors should watch for upcoming corporate earnings and global cues. If inflation shows signs of cooling, the RBI may pause its tightening cycle. However, persistent inflation could lead to more rate hikes, impacting market sentiment. Stay informed and review your portfolio strategy in this evolving economic landscape.
Excerpt from Mid-Day
Updated On: 07 October, 2026 05:50 PM IST | Mumbai | mid-day online correspondent The 30-share BSE Sensex shed 429.11 points, or 0.59 per cent, to settle at 72,638.70. The 50-share NSE Nifty lost 173.05 points, or 0.76 per cent, to end at 22,603.05 Representational Image. File pic. The domestic equity benchmark…Read the original at Mid-Day
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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