Mumbai, October 8, 2026: Indian equity markets extended losses on Thursday as investors digested the Reserve Bank of India’s hawkish rate hike and a sharp rise in crude oil prices. The Nifty 50 fell 0.54% to 22,482.1, while the BSE Sensex declined 0.48% to 72,290.77 in morning trade.
RBI Rate Hike Pressures Markets
The decline comes a day after the RBI raised the benchmark repo rate by 25 basis points to 5.50%, marking its first increase in nearly four years.
The central bank also adopted a more hawkish stance, increasing concerns that additional rate hikes could follow if inflation remains elevated.
Most Sectors Trade in Red
Market weakness was broad-based, with 14 of the 16 major sectoral indices trading lower.
Mid-cap and small-cap indices also fell about 0.8% each, reflecting cautious sentiment across the broader market.
Crude Oil Above $102 Adds Inflation Worries
Rising oil prices added further pressure on Indian equities.
Brent crude climbed above $102 per barrel as Middle East supply concerns and disruptions linked to attacks on oil tankers increased fears of tighter global supplies.
Higher Oil Prices a Concern for India
India imports a large portion of its crude oil requirements, meaning sustained increases in global oil prices can raise the country’s import bill and add to inflation.
That could also put additional pressure on the rupee and potentially influence future RBI policy decisions.
TCS Shares Buck the Trend
The IT sector emerged as a notable exception to the broader market weakness.
The Nifty IT index gained around 1.8%, led by a roughly 2.5% rise in Tata Consultancy Services shares ahead of the company’s September-quarter results.
Investors Await TCS Earnings
Analysts surveyed by Reuters expect TCS to report approximately 11.2% year-on-year revenue growth and a 14.2% increase in quarterly profit.
The results are being closely watched as TCS kicks off the earnings season for India’s major technology companies.
Digital Payment Stocks Fall
Shares of digital-payment companies including Paytm, One MobiKwik and Pine Labs came under pressure amid concerns over a possible delay in the rollout of merchant fees on digital transactions.
ITC Also Under Pressure
ITC shares dropped around 3% after large block deals were executed at a discount, adding further pressure to benchmark indices.
Markets Await Earnings for Fresh Direction
Analysts expect sentiment to remain cautious until investors receive clearer signals from corporate earnings and inflation data.
Rising borrowing costs, expensive crude oil and continued global uncertainty are likely to remain key factors influencing markets in the near term.
Source – Reuters
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