The Indian stock market ended lower on Wednesday, October 7, with the BSE Sensex falling 429.11 points, or 0.59%, to close at 72,638.70, and the NSE Nifty dropping 173.05 points, or 0.76%, to settle at 22,603.05. This decline snapped a two-session winning streak as the Reserve Bank of India raised its key policy rate for the first time in nearly four years, according to livemint.com.
The market came under pressure throughout the session, with the Sensex hitting an intraday low of 72,468.72, down 599.09 points or 0.81%. The indices initially opened weak, attempted a recovery, but failed to sustain gains and oscillated within a narrow range. Ajit Mishra, SVP of research at Religare Broking, noted that the markets reversed recent gains amid volatility caused by a combination of domestic and global factors, as reported by livemint.com.
This rate hike by the RBI marks a shift in monetary policy after nearly four years of stability, impacting investor sentiment. The decline in Indian markets also coincided with continued weakness in Asian markets and US stock futures, reflecting broader global economic concerns. The move contrasts with the previous period of easing and may influence borrowing costs and investment decisions across sectors.
On Thursday, October 8, the Indian stock market is expected to open on a negative note, with the GIFT Nifty signaling a muted start around 22,557, down nearly 35 points from Nifty futures, according to livemint.com.