BSE Sensex closes 0.59 percent lower after RBI rate hike
Published on 10/07/2026 at 18:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
BSE Sensex closed at 72,638.70 points on October 7, 2026, down 429.11 points, or 0.59 percent, after the Reserve Bank of India raised its policy rate and shifted toward tighter monetary policy, according to Business Standard.
RBI decision drives the decline
The RBI raised the repo rate by 25 basis points to 5.50 percent, the first increase since February 2023. The Monetary Policy Committee also changed its stance from neutral to calibrated tightening. The rate decision was unanimous, while the stance change passed by a four-to-two majority, Economic Times reported.
The central bank raised its fiscal-year 2027 growth forecast to 7.1 percent from 6.7 percent and lifted its inflation projection to 5.2 percent from 5.1 percent. Governor Sanjay Malhotra said rate cuts were off the table in the near term, according to Moneycontrol.
Session range and next catalyst
The index opened at 72,965.38 and reached an intraday low of 72,468.72 before recovering part of the decline. The low was 599.09 points below the opening level, while 26 Sensex constituents closed lower and four gained, The Tribune reported.
The next scheduled market catalyst is TCS quarterly earnings on Thursday, October 8, as India's large information-technology companies begin reporting September-quarter results, according to Upstox.
