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Market Snaps Two-Day Winning Streak as Nifty Drops Below 22,700 Following RBI Rate Hike
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CNBC TV18•07-10-2026, 15:52
Market Snaps Two-Day Winning Streak as Nifty Drops Below 22,700 Following RBI Rate Hike
- •The equity benchmark indices broke their two-day winning streak on Wednesday as the Sensex fell 429 points and the Nifty dropped 173 points to settle at 22,603.
- •The Reserve Bank of India announced a 25-basis-point rate hike accompanied by cautious commentary, heavily impacting sectors like NBFCs and small finance banks.
- •Rate-sensitive sectors such as realty and auto experienced declines of up to 2 percent, while the rupee weakened to a five-month low of 96.78 per dollar.
- •Metal stocks faced persistent selling pressure due to a rising dollar index, and higher crude oil prices weighed negatively on paint and airline shares.
- •Titan emerged as the top Nifty loser following lower-than-estimated Q2 jewellery growth, whereas Kotak Mahindra Bank bucked the trend to end as a top gainer.
Key Questions Answered
The equity benchmarks declined as the Reserve Bank of India enacted a 25-basis-point rate hike accompanied by cautious commentary, which weighed heavily on the broader market and dragged the Nifty back below 22,700.
The Indian rupee weakened significantly against the US dollar, slipping to a five-month low of ₹96.78 per dollar.
Rate-sensitive sectors like realty and auto fell up to 2%, while metal stocks declined due to a rising dollar index. Titan was the top Nifty loser following lower-than-estimated Q2 jewellery growth, alongside other laggards like Hindalco, Shriram Finance, JSW Steel, Asian Paints, and Infosys.
