Sensex slumps 429 points, Nifty falls below 22,650 after RBI rate hike

On Wednesday, India’s key stock indices slipped, ending a two‑day rally after the RBI lifted the repo rate by 25 basis points to 5.5 % and adopted a calibrated‑tightening stance, which weighed on market mood.

The Sensex fell 429.11 points (‑0.59 %) to 72,638.70, and the Nifty dropped 173.05 points (‑0.76 %) to 22,603.05.

Following the RBI’s move, investors stayed wary, seeing it as a sign of a tighter rate environment ahead. The hike sparked worries about higher borrowing costs, tighter liquidity, and the possible drag on growth and earnings.

Nifty dips under the 22,650 mark

Technically, analysts noted that the Nifty broke below the 22,700 level and settled close to the key 22,600 support.

“If the index stays below this point, it could slide toward 22,400, whereas 22,800 becomes the initial barrier for a bounce,” analysts added.

Price action around these thresholds will stay in focus as investors gauge the fallout from the RBI’s policy shift.

Metal shares weigh on the market

Within the Nifty basket, Titan Company, BEL and Hindalco Industries led the losers, pulling the index lower.

Sell‑off intensity was especially evident in metal stocks, pressuring the overall market. The Nifty Metal index posted the day’s poorest sector performance as investors reduced their metal holdings.

Elsewhere, the Nifty MidCap 100 slipped 0.63 %, showing strain among midsize shares, while the Nifty SmallCap 100 rose 0.30 %, moving opposite to the main trend.

The Nifty PSU Bank index stood out as a relative outperformer, closing in the green and lending some support to the market.

What investors will keep an eye on

Going forward, market players will watch how the RBI’s policy tweaks influence growth, liquidity and corporate profits over the next few months, as the bank continues to target inflation.

Attention is then likely to turn to the September‑quarter earnings season, which may offer additional cues for the market.

Analysts noted that, despite a sturdy macro environment, investors will scrutinize management remarks for clues on whether firms can cope with higher input costs, keep pricing power intact and sustain demand in the second half of the fiscal year.