Sensex, Nifty open in red following RBI repo rate hike

The BSE Sensex dropped 176.54 points (0.24%) to stand at 72,462.16. Similarly, the broad-based NSE Nifty 50 shed 61.05 points (0.27%), trading at 22,542.00.

Indian stock markets opened lower on Thursday, October 8, tracking the weakness seen in the previous session as investors remained cautious after the Reserve Bank of India raised its benchmark repo rate and shifted its policy stance towards calibrated tightening.

A screen displays a message at the Bombay Stock Exchange (BSE) in Mumbai. (REUTERS)

The NSE Nifty opened at 22,542.00, down 61.05 points, or 0.27 per cent, while the BSE Sensex opened at 72,462.16, lower by 176.54 points, or 0.24 per cent.

The subdued opening came a day after the benchmark indices snapped a two-session gaining streak. On Wednesday, the 30-share BSE Sensex fell 429.11 points, or 0.59 per cent, to close at 72,638.70, while the NSE Nifty declined 173.05 points, or 0.76 per cent, to settle at 22,603.05.

The decline on Wednesday followed the RBI's decision to raise the repo rate by 25 basis points to 5.50 per cent, its first rate hike in nearly four years. The six-member Monetary Policy Committee voted unanimously for the increase and shifted its stance from neutral to "calibrated tightening".

RBI Governor Sanjay Malhotra said rate cuts were off the table in the near term and that future policy action could involve a rate hike or a pause depending on evolving economic conditions.