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Markets Plummet After RBI Rate Hike And Hawkish Shift, Rupee Weakens Against Dollar
M
Moneycontrol•07-10-2026, 15:11
Markets Plummet After RBI Rate Hike And Hawkish Shift, Rupee Weakens Against Dollar
- •Markets suffered significant losses after the RBI raised interest rates by 25 basis points and shifted to a calibrated tightening stance.
- •The Sensex dropped over 400 points while the Nifty fell 250 points, with widespread selling across banking, realty, auto, and metal sectors.
- •The rupee weakened sharply past the 97 per dollar mark, losing 60 paise, and India's 10-year bond yield rose to 7.2 percent.
- •The RBI upgraded its FY27 growth forecast to 7.1 percent while increasing the inflation projection to 5.2 percent.
- •Top gainers on the Nifty 50 included Kotak Mahindra Bank and Bharti Airtel, whereas Titan, JSW Steel, and Adani Enterprises led the losses.
Key Questions Answered
The Reserve Bank of India raised rates by 25 basis points, marking its first rate hike in nearly four years, and shifted its policy stance to "calibrated tightening".
The RBI increased its FY27 growth forecast by 40 basis points to 7.1% and raised the FY27 inflation forecast by 20 basis points to 5.2%.
The Sensex dropped over 400 points, the Nifty fell 250 points, and sectors like auto, realty, and banking faced selling pressure. Meanwhile, the Indian rupee weakened by 60 paise to cross the 97-per-dollar mark, and the 10-year bond yield rose to 7.2%.
