Indian stock markets trimmed losses on Wednesday, October 7, after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) unanimously raised the repo rate by 25 basis points to 5.5% from 5.25%, in line with expectations. This marks its first rate hike in four years amid price pressures.
The recovery came after the RBI raised its real GDP growth forecast for FY27 by 40 basis points to 7.1%. RBI Governor Sanjay Malhotra said domestic economic activity had shown resilience despite global volatility. The central bank also raised its Consumer Price Index-based inflation projection for FY27 to 5.2%, the Governor said.
The Sensex recovered around 450 points or 0.6% from the day's low to hit an intraday high of 72,969.57, whereas, Nifty recovered 123 points or 0.5% to day's high of 22,701.6.
At 10:40 am, Nifty was trading 0.5% lower at 22,776.10 and Sensex was down 0.4% at 72,792.29.
Earlier, the Sensex had fallen as much as 547 points, or 0.7%, to an intraday low of 72,520.73, while the Nifty 50 declined 198 points, or 0.8%, to 22,578.25.