The domestic benchmark indices extended their losses on Thursday, October 8, after the Reserve Bank of India’s hawkish rate hike raised concerns over tighter financial conditions, while rising crude oil prices added to inflation worries.
The Nifty 50 fell 0.76% to 22,424.70, while the BSE Sensex declined 0.63% to 72,187.97, as of 10:39 IST.
The sell-off was broad-based, with 14 of the 16 major sectoral indices trading lower. The broader market also came under pressure, with both the Nifty Midcap and Smallcap indices falling around 0.8% each.
However, the IT sector bucked the broader trend, gaining 1.8%, led by a 2.5% rise in Tata Consultancy Services (TCS) ahead of its September-quarter earnings announcement later in the day.
Gaurav Arora, Head of Research at SAHI, said the market decline is more than a knee-jerk reaction to the RBI policy, with the broader macro backdrop turning increasingly risk-off.