Live: Banks, realty, auto stocks slip on RBI's hawkish shift; rupee crosses 97/$ | Closing Bell

Core Development: Live: Banks, realty, auto stocks slip on RBI's hawkish shift; rupee crosses 97/$ | Closing Bell

Market & Financial Impact: Markets break down after the RBI’s rate hike, with the central bank raising rates by 25 basis points after nearly four years and switching its stance to “calibrated tightening”. The RBI raises its FY27 growth forecast by 40 basis points to 7.1%, while the FY27 inflation forecast is increased by 20 basis points to 5.2%. The Sensex slips over 400 points, while the Nifty falls 250 points. The rupee breaches the 97-per-dollar mark, weakening 60 paise, while India’s 10-year bond yield rises to 7.2%. Market breadth turns negative, with declines outnumbering advances, and barring PSU banks, all sectors come under pressure. The Bank Nifty trims its losses and remains 450 points off the day’s low. Metal stocks decline sharply as the Dollar Index moves above 102, while auto and realty stocks fall following the rate action. Broader markets remain mixed, with smallcaps outperforming. Among Nifty 50 stocks, Kotak Mahindra Bank, Bharti Airtel and BSE are the top gainers, while Titan, JSW Steel and Adani Enterprises are the top losers.

Actionable Insight: 🔴 Bearish Risk: Regulatory scrutiny, profit decline, or sell-off risk may create near-term volatility.