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Informist, Wednesday, Oct. 7, 2026

By Shruti Nair

MUMBAI – Benchmark stock indices ended lower, failing to sustain the bounceback seen in the past two sessions. Following a 25-basis-point hike in the Reserve Bank of India's repo rate after the Monetary Policy Committee's meeting Wednesday, benchmark indices briefly came off lows but fell further in the second half of the session. While the Street had already pencilled in the hike, the central bank's change in stance to 'calibrated tightening' was of greater importance, signalling the growing inflationary pressures, according to analysts.

On Wednesday, the Nifty 50 index ended at 22603.05, down 173.05 points or 0.8%, while the BSE Sensex ended at 72638.70, down 429.11 points or 0.6%. Elevated crude oil prices and ensuing pressures will continue to be the main pressure point for domestic indices in the near term, analysts said. At 1544 IST, the December futures of Brent Crude oil were over 1% higher at nearly $102 per barrel. Market participants will also take into consideration the revised macroeconomic forecasts by the central bank. At its October policy meeting, the RBI revised its inflation forecast for 2026-27 (Apr-Mar) to 5.2% from 5.0%, underscoring continued supply-side pressures stemming from a deficit monsoon, El Nino conditions, and higher energy and commodity prices. RBI Governor Sanjay Malhotra said the inflation outlook was "not benign" and there were early signs of inflation becoming generalised as well. Malhotra also said the change in the central bank's stance to "calibrated tightening" suggests that rate cuts are not on the table in the near term.

Despite its cautious commentary on inflation, the RBI also revised its FY27 GDP growth forecast to 7.1% from 6.7% and projected real GDP growth in the June quarter of FY28 at 7.1%, underscoring that the revision reflects strength in domestic economic activity despite significant headwinds. In the near term, the impact of the policy announcement is expected to be selective, with rate-sensitive pockets facing pressure, according to a senior technical analyst at a top domestic broking firm. Banks with stronger balance sheets and liability franchises could remain relatively better placed, the analyst said.

While most sectors ended Wednesday's session in the red, the Nifty PSU Bank ended 1% higher as the top performer, with nearly all of its constituents recording gains. The Nifty Private Bank index also ended higher, though with marginal gains. On the other hand, the Nifty Realty and Nifty Metal indices ended roughly 2% lower each, the worst performing sectors. 

In the Nifty 50, shares of Kotak Mahindra Bank ended nearly 2% higher, having touched a nine-month high of INR 441.50 during the session. This was after multiple brokerages shared a positive outlook on the stock, taking into account the lender's September quarter business updates on Monday. The bank reported 25% on-year growth in its net advances as of Sept. 30.

Global brokerage HSBC upgraded its recommendation on the stock to "buy" and raised its target price to INR 520, according to media reports. The revised target price represents an upside of 18% from the stock's closing price. The brokerage cited greater clarity over the lender's leadership, stronger loan growth, and potential increase in its profit after the repo rate hikes, among the positives for the lender. HSBC raised the bank's earnings per share estimates for FY27–29 by 1–14%, citing stronger loan growth and steady net interest margins. Brokerages Citi and Goldman Sachs retained their "buy" recommendation on the stock, citing similar reasons. The stock was the highest gainer in the Nifty 50 index. Other financial stocks, ICICI Bank, HDFC Life Insurance Co., and Bajaj Finance ended 0.1-1% higher, among the few gainers in the Nifty 50 index. In the Nifty 200 index, Bank of Maharashtra, Union Bank of India, and Punjab National Bank ended 2-4% higher, among the top gainers.

On the other hand, Titan Co ended nearly 4% lower as the worst hit stock in the Nifty 50. This was after brokerage JP Morgan cut the target price on the stock after the Tata-owned company detailed its business updates for the September quarter post market hours Tuesday. Revenue from its consumer business grew 25% on year in the September quarter, while revenue from its jewellery business jumped 21% during Jul-Sept. Nevertheless, the company missed the brokerage's estimates for its revenue and its target price was cut 2% to INR 5,540. Among other notable laggards in the Nifty 50 were metal companies Tata Steel, JSW Steel, and Hindalco Industries, which ended 2-3% lower, while their peer National Aluminium Co. ended nearly 5% lower, the worst hit in Nifty 200 and Nifty 500 indices.

Among individual stocks, shares of Bharti Airtel ended over 1% higher after the telecommunications company announced a price hike of INR 50 on its postpaid plans, effective immediately. Existing subscribers will be upgraded to the new postpaid plans within a month, media reports said. Kalyan Jewellers ended nearly 4% higher, among the top gainers in Nifty 200, after the company said its consolidated revenue for the September quarter rose 26% on year. In the Nifty 500, Chennai Petroleum Corp. ended 14.7% higher, the top gainer, tracking the rise in Brent Crude oil prices. 

* Of the Nifty 50 stocks, 9 rose, 41 fell

* Of the Sensex stocks, 4 rose, 26 fell

* On the NSE, 1,549 stocks rose, 2,043 fell, and 98 were unchanged

* On the BSE, 1,936 stocks rose, 2,459 fell, and 226 were unchanged
* Nifty Metal: down 2.3%; Nifty Realty: down 1.8%; Nifty PSU Bank: up 1%

BSE                                            NSE

Sensex: 72638.70, down 429.11 points or 0.6%   Nifty 50: 22603.05, down 173.05 points or 0.8%

End

US$1 = INR 96.78

Edited by Avishek Dutta

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