Indian benchmark indices ended lower in a volatile session, snapping their two-day winning streak after the RBI raised the repo rate by 25 bps to 5.50%, its first hike since February 2023, and shifted its stance to calibrated tightening.
After a weak start, the Nifty broke below 22,600 intraday and witnessed some buying in the mid-session; however, gains failed to sustain, with the index remaining under pressure through the day amid selling in rate-sensitive sectors.
The RBI raised its FY27 GDP growth forecast to 7.1% from 6.7%, while lifting the inflation projection to 5.2% from 5%.
At close, the Sensex was down 429.11 points or 0.59 percent at 72,638.70, and the Nifty was down 173.05 points or 0.76 percent at 22,603.05.
Broader indices ended mixed with Nifty Midcap index falling 0.6%, and smallcap index gaining 0.3%.