India’s BSE Sensex slipped about 0.5% to 72,294 on Thursday, extending the previous session’s losses as investors digested the Reserve Bank of India’s surprise rate hike alongside a renewed surge in oil prices. On Wednesday, the RBI raised its repo rate by 25 basis points to 5.5%—its first increase in nearly four years—signaling a more hawkish policy stance and stoking concerns about economic growth.
Sentiment toward Indian equities was further pressured as Brent crude rose above $100 a barrel, intensifying worries about inflation and the country’s import bill. At the same time, the rupee weakened by 0.4% to 96.775 per dollar, hovering near its record low of 96.96.
Sector-wise, all major groups declined with the exception of information technology, which outperformed the broader market. The IT index advanced about 1.2%, led by Tata Consultancy Services, which gained 2.4% ahead of its September-quarter earnings release later on Thursday—an announcement that will effectively kick off the earnings season for India’s blue-chip companies.
Among the notable decliners were One 97 Communications, down 5.8%, ITC, which fell 2.3%, and Reliance Industries, off 1.3%.
