Sensex plunged 330.5 points to 54,213.6, the largest one‑day drop since the start of the year, as traders reacted to the RBI’s opening of its three‑day Monetary Policy Committee meeting.
The NSE Nifty mirrored the sentiment, falling 128.4 points to 20,482.3, underscoring a nervous market stance ahead of the Wednesday rate announcement.
The RBI’s policy repo rate remains at 5.25%, unchanged from the 0.25‑percentage‑point hike in February 2023, and the committee is expected to keep it steady until the first rate‑cut cycle in 2025.
Inflationary pressures, with consumer prices nudging 6.8% year‑on‑year, and a global backdrop of oil prices hovering above $100 a barrel—bolstered by Middle East tensions—have amplified risk‑off sentiment.
Across Asia, equity markets ticked lower; the MSCI Emerging Markets index slipped 0.9%, while U.S. equities reached record highs, buoyed by tech gains.
Market participants now focus on the RBI’s policy minutes for clues on future stance, with analysts betting on a steady repo rate, though any sign of a cut would ignite a rally.