NIFTY50 and BSE SENSEX witnessed a sharp sell-off on Wednesday, 7 October 2026, after the Reserve Bank of India raised the repo rate by 25 basis points to 5.5%, the first increase since February 2023. Both benchmark indices traded nearly 1% lower on an intraday basis. As of 2:00 pm, NIFTY50 was down 175 points or 0.7% at 22,600, with a day low of 22,552. BSE SENSEX fell 432 points or 0.5% to 72,634, hitting a day low of 72,488.

Among NIFTY50 constituents, Titan fell 3.8%, Shriram Finance dropped 3.0% and Adani Enterprises declined 3.0%, making them the top three losers. Broader indices showed mixed performance: NIFTY Midcap100 fell 0.7% while NIFTY Smallcap100 rose 0.2%. The volatility index, India VIX, climbed 2.5% to 13.9. Except for NIFTY Media (+0.9%) and NIFTY PSU Bank (+0.4%), all other sectoral indices traded in the red. NIFTY Metal (-2.1%), NIFTY Realty (-1.5%) and NIFTY Auto (-1.4%) were the top sectoral losers.

The RBI's decision followed the annual inflation rate rising to 4.82% in August 2026, the highest level since December 2024 and above the RBI's 4% target for the third consecutive month. The move was in line with broader expectations after rate hikes by several central banks, including the US Federal Reserve. The Middle East conflict and oil price uncertainty have fuelled inflationary pressures across the globe. Rate-sensitive sectors such as real estate, automobiles and NBFCs traded under pressure following the hike.

Around 105 stocks hit their 52-week low as investors turned cautious after the repo rate increase and concerns over tighter liquidity. Prominent names that reached their lowest point in a year include Tata Power (₹341, -12.2%), Mahindra & Mahindra (₹2,803.8, -19.5%), Max Healthcare (₹891.6, -20.1%), SBI Cards and Payment (₹555.6, -38.5%), Aditya Birla Real Estate (₹1,052.1, -34.5%), Muthoot Finance (₹2,641, -18.1%), IREDA (₹107.1, -29.3%), IRFC (₹76.04, -39.9%), National Securities Depository (₹740, -37.9%), ACC Limited (₹1,160.1, -37.4%), Ambuja Cements (₹352.4, -37.8%), Inox Wind (₹66.73, -51.8%) and Canara Bank (₹116.5, -7.2%). The 1-year returns are as per the NSE website.

Brent crude oil prices climbed above $100 per barrel once again amid supply concerns linked to the US-Iran war and a storm affecting US oil production. Consistent selling by foreign institutional investors and a weaker Indian rupee further weakened investor sentiment, compounding the downward pressure on the market.