The Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.5%, the first hike since February 2023. The increase was aimed at curbing spiralling inflation, which has been above the upper tolerance band of 4% since June. The policy stance moved from neutral to calibrated tightening, indicating that rate cuts are off the table for the foreseeable future and that any further hikes will be gradual and selective, analysts said.

Indian equity benchmarks resumed their decline after a two‑day pause. The SENSEX fell as much as 599 points, closing 429 points lower at 72,639, while the NIFTY50 touched an intraday low of 22,546 and ended 173 points down at 22,603. Sentiment was further dampened by a 1.5% rise in Brent Crude futures for December delivery to $102 per barrel, adding global price pressure.

On the NSE, 12 of the 15 major sector gauges ended lower. The NIFTY Metal index led with a 2.2% fall, and the NIFTY Auto, FMCG, IT, Pharma, Realty, Healthcare, Consumer Durable and Oil & Gas indices each slipped between 0.5% and 1.77%. PSU banking and media shares attracted buying interest. The NIFTY Midcap 100 index declined 0.6% while the NIFTY Smallcap 100 index rose 0.3%. Overall market breadth was negative, with 2,043 shares closing lower against 1,549 that closed higher.

Shares of several newly listed companies that reported earnings for the first quarter of the 2026‑27 financial year (Q1 FY27) were in focus, including Asset Reconstruction Company India (ARCIL), Glass Wall Systems, Kanohar Electricals and Veegaland Developers. Dilip Buildcon jumped as much as 3.5% to an intraday high of ₹415.2 after securing an order from the Petroleum and Natural Gas Regulatory Board. Titan was the top loser in the NIFTY50, falling 3.8% to close at ₹4,377 after its Q2 business update failed to enthuse investors.

Other decliners included Adani Enterprises, Hindalco, Bharat Electronics, JSW Steel, Infosys, Asian Paints, Mahindra & Mahindra, Adani Ports, Larsen & Toubro, Shriram Finance and Tata Steel, each dropping between 1.6% and 3.75%. Notable gainers in the NIFTY50 were Kotak Mahindra Bank, BSE, Bharti Airtel, ICICI Bank, Coal India, Max Healthcare, HDFC Life and Bajaj Finance.