Stock Market Open Report Today, October 7, 2026: Sensex, Nifty Decline as RBI Hikes Repo Rate by 25 bps to 5.50%

Mumbai, Oct 7: Indian equity benchmarks declined on Wednesday as the Reserve Bank of India raised the repo rate by 25 basis points to 5.50 per cent and shifted its policy stance to calibrated tightening. At 10:17 am, the BSE Sensex was down 295.95 points, or 0.41 per cent, at 72,771.86, while the NSE Nifty 50 was down 124.60 points, or 0.55 per cent, at 22,651.50 at 10:18 am. The two indices had gained for two straight sessions, with the Sensex closing at 73,067.81 and the Nifty at 22,776.10 on Tuesday. 

Rate Hike Sets the Tone for Dalal Street 

The monetary policy outcome has become the dominant driver of sentiment. Rate-sensitive pockets are feeling the pressure, with the Nifty Auto index down 1.16 per cent and the Nifty Realty index down 0.65 per cent, while the Nifty Bank index is off a milder 0.18 per cent. The India VIX, the market’s fear gauge, is up 2.68 per cent at 13.97. The Nifty is still down 4.89 per cent over 30 days, although it remains above its 52-week low of 22,182.55. 

RBI Policy: Repo Rate Raised to 5.50%, Stance Now Calibrated Tightening 

The RBI announced its monetary policy decision today after the Monetary Policy Committee (MPC) meeting. The committee hiked the repo rate by 25 basis points to 5.50 per cent from 5.25 per cent, and Governor Sanjay Malhotra said the MPC decided unanimously in favour of the increase in the policy interest rate. 

Equally important, the MPC changed its stance to calibrated tightening from neutral. Malhotra said the policy action ahead can only be a rate hike or a pause, and underscored that a rate cut is unlikely in the near term given current conditions. In other words, the central bank has closed the door on easing for now, which is a clear hawkish signal for borrowers, lenders and equity investors alike. 

On the economy, the Governor said growth has been strong and that the momentum in economic activity remains broad-based. The committee chose to tighten as the war keeps global energy markets on edge.

Global Cues Offer Little Relief 

Global cues are mixed. Wall Street ended higher on Tuesday, with the S&P 500 up 0.58 per cent, but most Asian markets are trading lower this morning and Brent crude is holding above 101 dollars a barrel. The Iran war, now in its seventh month, continues to simmer, and an Axios report said President Donald Trump has voiced fears that Iran could target American cities such as Los Angeles and San Diego. Higher energy prices and geopolitical risk remain a concern for India, a large importer of crude. 

Top Gainers and Losers 

Only four stocks featured in the Nifty gainers list in early trade on Wednesday. Kotak Mahindra Bank (KOTAKBANK) rose 1.48 per cent to a last traded price (LTP) of Rs 438.30 from the previous close of Rs 431.90, Bharti Airtel (BHARTIARTL) gained 0.64 per cent to Rs 1,822.00 from Rs 1,810.50, Dr Reddy’s Laboratories (DRREDDY) added 0.59 per cent to Rs 1,215.10 from Rs 1,208.00, and Coal India (COALINDIA) edged up 0.30 per cent to Rs 412.90 from Rs 411.65.  

On the losing side, Titan Company (TITAN) was the top loser, down 3.85 per cent at Rs 4,374.90 against the previous close of Rs 4,550.00, followed by Hindalco Industries (HINDALCO), down 1.91 per cent at Rs 922.50 against Rs 940.50, Asian Paints (ASIANPAINT), down 1.89 per cent at Rs 2,378.50 against Rs 2,424.20, Bajaj Auto (BAJAJ-AUTO), down 1.87 per cent at Rs 9,830.00 against Rs 10,017.00, and Bharat Electronics (BEL), down 1.79 per cent at Rs 380.45 against Rs 387.40. 

Broad Markets and Sectoral Indices 

The broader market mirrored the weak tone. According to the NSE all-indices data,  the Nifty 100 fell 0.69 per cent to 23,717.50 and the Nifty India FPI 150 declined 0.68 per cent to 1,468.40. Small caps held up better, with the Nifty Smallcap 100 up 0.17 per cent at 19,482.15 and the Nifty Smallcap 50 up 0.14 per cent at 9,714.25, the only two market-cap indices in the green.  

Among sectors, the Nifty India Internet index gained 0.75 per cent to 1,389.70, the Nifty India Tourism index rose 0.24 per cent to 7,712.60 and the Nifty Media index added 0.15 per cent to 1,570.10. The Nifty Metal index was the sharpest sectoral loser, down 1.33 per cent at 12,431.95, followed by the Nifty Consumer Durables index, down 1.28 per cent at 36,280.70, and the Nifty Auto index, down 1.16 per cent at 25,245.40. 

Asian Markets 

Asian markets were mostly lower on Wednesday morning. Japan’s Nikkei fell 0.86 per cent to 70,074.13, South Korea’s Kospi lost 0.97 per cent to 6,874.33 and Hong Kong’s Hang Seng slipped 0.62 per cent to 24,129.83. Singapore’s Straits Times declined 0.93 per cent to 5,648.52, while Taiwan’s index eased 0.08 per cent to 49,783.26. On the positive side, China’s Shanghai Composite rose 0.31 per cent to 3,842.20 and Australia’s ASX 200 added 0.07 per cent to 8,741.80. 

US Markets 

Wall Street ended higher on Tuesday. The S&P 500 gained 44.98 points, or 0.58 per cent, to 7,818.93, the Dow Jones Industrial Average rose 253.38 points, or 0.49 per cent, to 51,521.28, and the Nasdaq added 122.58 points, or 0.45 per cent, to 27,599.89. The VIX eased 3.29 per cent to 15.01, while the US 10-year yield stood at 5.311 per cent. 

Oil Prices 

Crude oil prices edged higher on Wednesday. Brent crude rose 0.83 per cent, or 83 cents, to 101.41 dollars a barrel, while West Texas Intermediate gained 0.78 per cent, or 70 cents, to 90.16 dollars. Murban crude was the exception, falling 2.66 per cent to 106.19 dollars, even as Mars crude jumped 3.48 per cent to 117.91 dollars and the OPEC basket gained 2.14 per cent to 111.72 dollars. Prices remain elevated as the Iran war, which has jolted global energy markets, keeps the Strait of Hormuz in focus. 

Middle East Conflict 

The Iran war, now in its seventh month, remains unresolved. US Vice President JD Vance told Reuters that Iran must make a meaningful reduction in its nuclear enrichment capacity to end the conflict, adding that Washington is unsure how Tehran makes decisions after the joint US-Israeli strikes at the start of the war killed Supreme Leader Ayatollah Ali Khamenei. President Trump has rejected Tehran’s latest offer and warned that military operations could intensify after the November midterm elections. Axios reported that Trump told a Nebraska rally on Tuesday that the war’s cost was a small price to pay, even as he spoke of Iran possibly taking out Los Angeles and San Diego. 

Indian Markets on Tuesday 

Indian equity benchmarks extended their recovery for a second straight session on Tuesday ahead of the RBI’s policy decision. The Sensex ended 685.34 points, or 0.95 per cent, higher at 73,067.81, while the Nifty gained 220.35 points, or 0.98 per cent, to settle at 22,776.10, as positive global cues, easing crude prices and strong September-quarter business updates lifted sentiment. Trent surged 12.6 per cent after a 23 per cent year-on-year rise in standalone revenue from operations, Kotak Mahindra Bank gained 3.8 per cent, Reliance Industries climbed 2.7 per cent and Axis Bank rose 2.1 per cent, with 2,685 shares advancing against 1,495 declining. Fourteen of the 16 major sectoral indices ended higher, while the Nifty Realty index fell 0.7 per cent, the IT index declined 0.6 per cent and the PSU Bank index slipped 0.3 per cent. 

Sources

• NSE gainers, losers and all-indices data (Oct 7, 2026)
• BSE and NSE live quotes
• RBI policy announcement
• Reuters
• Axios
• PTI
• OilPrice.com
• CNBC.