Stock markets decline in early trade as RBI signals more tightening
Indian stock markets experienced a decline as the Reserve Bank of India raised the repo rate to 5.50% to combat inflation. The move, combined with rising crude oil prices and foreign fund outflows, has created a cautious outlook for investors.
Why it matters
The shift to a 'calibrated tightening' policy by the RBI signals a potential end to easy liquidity, impacting borrowing costs and market sentiment across the Indian economy.
Benchmark indices Sensex and Nifty drifted lower in early trade on Thursday (October 8, 2026) as growing prospect of tighter domestic and global monetary conditions persisting for longer, surging crude oil prices and foreign fund outflows dented sentiment.
The 30-share BSE Sensex declined 264.97 points to 72,408.15 in early trade. The 50-share NSE Nifty was down 87.50 points to 22,507.65.
Among the 30 Sensex firms, ITC, Adani Ports, Bharat Electronics, Bajaj Finance, Bajaj Finserv and InterGlobe Aviation were among the major laggards.
Tata Consultancy Services, HCL Tech, Tech Mahindra and Infosys were among the winners.
Brent crude, the global oil benchmark, traded 2.02% higher at $102.2 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹6,121.37 crore on Wednesday (October 7, 2026), according to exchange data.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in