The 3.7% year‑on‑year CPI reading, released on Wednesday, eclipsed the 3.6% forecast, driven by a 4.8% jump in energy prices—BLS data.
Core CPI, stripped of volatile food and energy, rose 2.6%, a 0.2‑point climb from August's 2.4%, nudging the Fed toward a potential rate increase—BLS.
Wall Street retaliated; the Dow fell 0.3%, S&P 500 slid 1%, and Nasdaq dropped 1.5%, while the 10‑year Treasury yield spiked 10 basis points to 4.12%—CME.
Foreign institutional investors sold equities worth ₹1,857 crore, whereas domestic institutional buyers pumped ₹2,670 crore into the market, leaving the Sensex down 252 points and the Nifty 99 points—NSE.
Adding to the market chatter, Jio Platforms filed a revised IPO prospectus on October 21, 2026, planning to issue up to 27 crore shares and raise ₹27 crore to repay RJIL borrowings—BSE filing.
Analysts warn that the rising energy prices and the Fed's hawkish stance could keep volatility high until the next policy meeting in late October—Citi.