Sensex, Nifty trim losses as RBI hikes rate for first time in nearly four years; what's ahead
Business Today 1 hr ago·7 Oct 2026, 6:41 am
The Reserve Bank of India raised its policy repo rate for the first time in almost four years, signalling a shift toward tighter monetary conditions. The modest hike was aimed at curbing persistent inflation, and it nudged the benchmark Sensex and Nifty indices to trim earlier losses, as investors reassessed the cost of capital.
Higher rates generally increase borrowing costs for businesses and consumers, which can weigh on corporate earnings and dampen spending. While the market had been bracing for a rate move, the actual decision helped stabilize sentiment, limiting the sell‑off that had been unfolding.
Investors should keep an eye on the RBI’s future policy outlook, upcoming inflation data, and global monetary trends. Corporate earnings reports and sector‑specific impacts, especially for banks and interest‑sensitive industries, will also shape market direction in the weeks ahead.
Excerpt from Business Today
The 30-share BSE Sensex pack was down 187.54 points or 0.26 per cent at 72,880.27, while the broader NSE Nifty index declined 91.55 points or 0.40 per cent to 22,684.15 at the last check. With this, Sensex recovered from the day's low of 72,520.73, while Nifty rebounded from 22,578.25 level. Indian equity benchmarks…Read the original at Business Today
Key takeaways
- Category: Stocks.
- Flagged as a high-impact, market-moving story.
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