07-Oct-2026      15:52

Market snaps two-day winning streak; Nifty ends below 22,650

The key equity indices ended with significant losses on Wednesday, snapping a two-session gaining streak, after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.50% and shifted its monetary policy stance to 'calibrated tightening'. The Nifty closed below the 22,650 mark. Metal, realty and auto stocks declined, while PSU bank, media and private bank stocks advanced.

As per provisional closing data, the barometer index, the S&P BSE Sensex tanked 429.11 points or 0.59% to 72,638.70. The Nifty 50 index lost 173.05 points or 0.76% to 22,603.05. Over the past two trading sessions, the Sensex advanced 1.61%, while the Nifty 50 gained 1.58%.

In the broader market, the BSE 150 MidCap Index fell 0.64 and the BSE 250 SmallCap Index rose 0.02%.

The market breadth was negative. On the BSE, 2,018 shares rose and 2,353 shares fell. A total of 243 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.25% to 13.92.

RBI hikes repo rate by 25 bps to 5.50%

The RBI Monetary Policy Committee (MPC) unanimously raised the repo rate by 25 basis points to 5.50% from 5.25%, in line with expectations, after its three-day meeting on 5-7 October. The RBI raised the repo rate for the first time in nearly three years and changed its policy stance from neutral to calibrated tightening. The Standing Deposit Facility (SDF) rate was raised to 5.25%, while the Marginal Standing Facility (MSF) rate and bank rate remained unchanged at 5.75%.

Buzzing Index:

The Nifty Metal index declined 2.33% to 12,306.70. The index rose 1.12% in the past two trading sessions.

National Aluminium Company (down 4.7%), Adani Enterprises (down 3.89%), Hindalco Industries (down 2.76%), Jindal Stainless (down 2.5%), JSW Steel (down 2.4%), NMDC (down 1.9%), Tata Steel (down 1.88%), Jindal Steel (down 1.86%), Vedanta Aluminium Metal (down 1.81%) and Steel Authority of India (down 1.73%) declined.

Stocks in Spotlight:

Kalyan Jewellers India added 3.80% after the jewellery retailer reported consolidated revenue growth of more than 26% year-on-year (YoY) in Q2 FY27, supported by strong operating momentum across its key markets. Revenue from the company's India operations grew approximately 27% YoY during the quarter, with same-store sales growth (SSSG) of around 20%, despite a high base in the year-ago period due to strong Navratri sales.

Kanohar Electricals surged 14.01% after the transformer manufacturer reported a 140.04% jump in standalone net profit to Rs 27.34 crore in Q1 FY27, compared with Rs 11.39 crore in Q1 FY26. Revenue from operations more than doubled to Rs 137 crore in Q1 FY27 from Rs 67 crore in Q1 FY26, registering a growth of 103.5% YoY.

Utkarsh Small Finance Bank rose 2.73% after the bank reported a 54.9% year-on-year increase in total disbursements to Rs 3,525 crore in Q2 FY27. Total disbursements rose 4.6% quarter-on-quarter (QoQ) from Rs 3,370 crore in Q1 FY27. Non-Joint Liability Group (JLG) disbursements grew 94.2% YoY to Rs 2,602 crore, while JLG disbursements declined 1.3% to Rs 923 crore.

Titan Company fell 3.52% after the company reported its provisional business update for Q2 FY27. The company said its consumer businesses recorded 25% year-on-year growth during the quarter ended 30 September 2026. It added 78 net stores during the quarter, taking its combined retail network to 3,758 stores. The jewellery business saw a moderation in growth from 39% in Q1 FY27 to around 21% in Q2 FY27.

Asset Reconstruction Company (India) (ARCIL) hit the upper circuit of 10% after the company reported a 54.15% year-on-year (YoY) increase in consolidated net profit to Rs 89.15 crore in Q1 FY27 from Rs 57.83 crore in Q1 FY26. Revenue from operations jumped 115.35% YoY to Rs 234.74 crore in the quarter ended 30 June 2026.

PTC Industries rallied 6.82% after the company announced the launch of its qualified institutional placement (QIP) with a floor price of Rs 22,150 per equity share. The floor price of Rs 22,150 per share represents a discount of 4.21% over the scrip's previous closing price of Rs 23,124.10 on the BSE.

Larsen & Toubro (L&T) fell 1.96%. The company announced that its subsidiary L&T Energy CarbonLite Solutions has secured a Limited Notice to Proceed (LNTP) from DVC CIL Power (DVCCIL) for the main plant package of the 2x800 MW Chandrapura thermal power plant in Jharkhand.

Global Markets:

Dow futures were down around 193 points, indicating a negative opening in the US stocks today.

European markets declined, while Asian shares ended lower on Wednesday, with mainland Chinese markets remaining closed for a holiday. Elevated global government bond yields and geopolitical tensions weighed on investor sentiment, while rising oil prices amid renewed concerns over Middle East supply disruptions added to the pressure.

Earlier, US President Donald Trump said the war with Iran would end 'the nice way or the not-so-nice way' and pointed to a recovery in oil shipments through the Strait of Hormuz. However, overall flows remained below pre-war levels, according to reports.

US stocks ended higher on Tuesday, 6 October 2026, with the S&P 500 and Nasdaq Composite closing at record highs as easing Treasury yields and relatively stable crude oil prices supported risk appetite. The focus has now shifted towards the Federal Reserve's meeting minutes due later on Wednesday and the upcoming third-quarter earnings season.

The Dow Jones Industrial Average gained 253.38 points, or 0.49%, to 51,521.28, while the S&P 500 rose 45.00 points, or 0.58%, to 7,818.93. The Nasdaq Composite advanced 122.48 points, or 0.45%, to 27,599.79. The S&P 500 and Nasdaq both closed at fresh record highs.

Technology and artificial intelligence-related stocks remained important drivers of the rally. Semiconductor shares including Advanced Micro Devices and Marvell Technology gained amid continued optimism over demand for chips and infrastructure supporting artificial intelligence applications. Nvidia also remained near a $6 trillion market valuation, highlighting the continuing strength of the AI investment theme.

The rally also received a boost from the energy sector. Constellation Energy surged after announcing a major long-term electricity agreement with Google. The deal covers 3,590 MW of power, including a 20-year agreement for 890 MW from nuclear capacity and a separate 15-year agreement covering 2,700 MW from Constellation's existing PJM assets. Constellation plans to invest more than $4.3 billion to increase output at 11 nuclear reactor units. The agreement highlights the growing demand for reliable electricity as technology companies expand energy-intensive data-centre and AI infrastructure.

The deal also reinforced investor interest in companies positioned to benefit from the increasing power requirements of AI data centres. Constellation shares rose more than 12% on Tuesday, while other nuclear and power-related stocks also advanced.

US Treasury yields eased from their recent highs, providing some relief to equity markets. The 10-year Treasury yield ended around 5.27%, down roughly 3 basis points, while the two-year yield declined to around 4.80%. The 10-year yield had climbed to about 5.35% on Monday, its highest level in more than two decades, increasing pressure on interest-rate-sensitive assets.

Meanwhile, the US trade deficit widened sharply in August to $105.6 billion, up 13.7% from the previous month and the largest since March 2025. The increase was driven largely by a jump in imports, including crude oil, semiconductors and other goods, with imports reaching a record level.

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