At 12:37 PM, Nifty 50 hovered at 22,371.70, a 310.85‑point dip, while the BSE Sensex slid to 71,764.88, a 873.82‑point fall.
The RBI’s decision to raise the repo rate by 100 basis points—its first move in almost four years—sent shockwaves through the market. Jefferies' senior analyst flagged a further 100‑bps climb in the tightening cycle, while Nomura’s research notes that the central bank’s calibrated stance is a cue to anchor inflation expectations.
Bond yields are now at a 24‑year peak. The U.S. 30‑year Treasury is trading above 5.71%, the 10‑year benchmark has leapt past 5.3%, and the 2‑year is near 4.9%. Such rates make fixed‑income more attractive, pressuring emerging‑market equities.
Oil prices added fuel to the fire, with Brent crude breaking $102 a barrel after a string of attacks on Gulf tankers. The increased risk premium has pushed the price up 2%, stoking fears of supply disruptions.
Foreign institutional investors continued to unload, scooping Rs 8.5 lakh crore off the market cap. Geojit’s VK Vijayakumar warned that with the 10‑year yield hovering above 5.3%, FIIs are likely to keep selling until a clear reversal emerges.
Traders will now focus on the RBI's next policy meeting and the trajectory of U.S. yields. If the central bank signals further tightening or yields remain elevated, the benchmark indices could stay under pressure until a shift in FII sentiment materialises.