Sensex drops more than 1,200 points after RBI lifts repo rate to 5.50% and shifts to calibrated tightening
AI Market Summary
Indian equities sold off after the RBI unexpectedly hiked the repo rate 25 bps to 5.50% and shifted its stance to \u0022calibrated tightening\u0022, pushing markets to reprice for higher-for-longer domestic rates. Elevated US yields, persistent FII outflows, and a Brent spike above $102 compounded risk-off conditions, broadening sector declines. Payment/fintech names also weakened on potential delays to merchant fee rollout, reinforcing negative sentiment.
Impact level
● Medium
Affected assets
NCSINIFTY52USD/USDT-1.51%
AI Insight · NCSINIFTY52USD/USDTAI Insight
▼ Bearish
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Indian stocks extended their decline on Thursday, with the Sensex down more than 1,200 points at one stage and the Nifty sliding over 400 points. The move followed the Reserve Bank of India’s surprise 25-basis-point rate hike to 5.50% and a shift in its policy stance from “neutral” to “calibrated tightening,” which dented market optimism. Rising crude oil prices and foreign outflows added to the selling pressure.
