Neutral impactStocks
Sensex, Nifty snap two-day rally ahead of RBI policy; crude oil spike weighs
PSU Watch 3 hrs ago·7 Oct 2026, 5:20 am
Indian equity benchmarks reversed their recent winning streak on Tuesday, snapping a two-day rally ahead of the Reserve Bank of India's (RBI) monetary policy announcement. The market sentiment was dampened by a sharp rise in crude oil prices, which increased the cost of imports for the country.
This move is significant for investors as it adds to inflationary pressures. The RBI is widely expected to maintain the status quo on interest rates, but a higher oil bill could complicate the central bank's future policy decisions. Traders are now closely watching the policy outcome for any hints on inflation management.
Investors should keep a close eye on the RBI's policy statement and the accompanying inflation projection. Any indication of a hawkish stance or concerns over rising oil prices could trigger volatility in the coming sessions.
Excerpt from PSU Watch
New Delhi: Benchmark equity indices Sensex and Nifty fell in early trade on Wednesday, snapping a two-session rally as rising crude oil prices, continued foreign fund outflows and caution ahead of the Reserve Bank of India’s monetary policy decision weighed on sentiment. Follow The PSUWatch Channel on WhatsApp The…Read the original at PSU Watch
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