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Key gauges snap 2-day gaining streak on Wednesday
Oct-07-2026

Indian equity benchmarks closed lower on Wednesday, after two straight days of gains, as the RBI raised the key policy rate for the first time in nearly four years. Rising crude oil prices and persistent foreign fund outflows also hit market sentiment. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,961.30 crore on Tuesday, according to exchange data. 

Both Sensex and Nifty ended in red, but the indices showed a divergence in losses. Nifty unperformed Sensex with cut of over 0.75%, while Sensex lost around 0.60% amid broad-based selling in heavyweight stocks. Metal, Consumer Durables and Realty stocks came under heavy selling pressure, dragging the headline indices lower. In contrast, Telecom stocks bucked the broader market trend. 

Some of the important factors in trade:

RBI hikes repo rate by 25 bps to 5.5% amid rising inflation, West Asia crisis: After nearly three-and-half years, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) unanimously decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) to 5.50 per cent, in a bid to tame rising inflation amid continuing West Asia crisis. 

India's manufacturing sentiment improved in July-September quarter: The Federation of Indian Chambers of Commerce & Industry (FICCI) Survey has said that India's manufacturing sentiment improved in Q2FY27 as factories reported higher capacity utilisation and higher or same levels of production as compared to the previous quarter.

India, Switzerland hold discussions on fast-tracking Bilateral Investment Treaty: Finance Minister Nirmala Sitharaman has held discussions with Swiss President Guy Parmelin on issues of common interest to both India and Switzerland, including taking forward negotiations on the Bilateral Investment Treaty (BIT) which is mutually beneficial to both nations.  

Union Cabinet greenlights Rs 10,000 crore SME Growth Fund: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Rs 10,000 crore for the establishment of SME Growth Fund (SGF) for direct equity investments in Small and Medium Enterprises (SMEs). 

Global front: European markets were trading lower with renewed Middle East tensions and France's deepening fiscal crisis keeping investors on edge. Asian markets settled lower as oil prices climbed and yields rebounded on fears Iran is stepping up attacks on tankers in the Strait of Hormuz. 

Finally, the BSE Sensex fell 429.11 points or 0.59% to 72,638.70 and the CNX Nifty was down by 173.05 points or 0.76% to 22,603.05.

The BSE Sensex touched high and low of 73,018.82 and 72,468.72, respectively. There were 4 stocks advancing against 26 stocks declining on the index.

The lone gaining sectoral index on the BSE was Telecom up by 0.91%, while Metal down by 2.46%, Consumer Durables down by 1.83%, Realty down by 1.74%, Basic Materials down by 1.60% and Auto down by 1.41% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.21%, Bharti Airtel up by 1.33%, ICICI Bank up by 1.15% and Bajaj Finance up by 0.24%. On the flip side, Titan Company down by 3.52%, Bharat Electronics down by 2.21%, Asian Paints down by 2.07%, Infosys down by 2.06% and Larsen & Toubro down by 1.96% were the top losers.

Meanwhile, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Rs 10,000 crore for the establishment of SME Growth Fund (SGF) for direct equity investments in Small and Medium Enterprises (SMEs). The SGF is aimed at creating champion Indian enterprises across manufacturing, services, technology, innovation-driven sectors, and strategic value chains.

The Information and Broadcasting Minister Ashwini Vaishnaw has said that SGF will be operated in collaboration with the MSME Ministry and the Finance Ministry. Pointing out the existing structural gap for equity growth capital for Small and Medium Enterprises, the minister said that there are existing funds, which provide equity support, but the majority of them focus on early-stage enterprises and cover mainly micro enterprises. 

He noted that the government will provide an aggregate commitment of Rs 10,000 crore to the Alternative Investment Fund (AIF) established under the SGF framework under the initiative. By enabling manufacturing enterprises to expand capacity, adopt advanced technologies and achieve greater scale, the SGF is expected to improve scale, productivity, and strengthen export competitiveness. He added that the majority of the funds will go towards SMEs in the manufacturing segment. Investments across industrial clusters, including those in Tier-II and Tier-III cities, will support balanced regional industrial development, reinforce local supply chains and generate high-quality employment opportunities. 

Highlighting importance of MSME sector, he said that MSMEs are very important for employment generation, exports, and manufacturing. He also said that the definition of MSMEs has also been changed, and steps have been taken to ensure that they can access loans more easily. He added that SGF is envisioned as a transformational instrument to support enterprises at critical inflection points in their growth journey and will serve as a key pillar in advancing the vision of Viksit Bharat at 2047. 

CNX Nifty touched high and low of 22,717.65 and 22,546.30, respectively. There were 9 stocks advancing against 41 stocks declining on the index. 

The top gainers on Nifty were Kotak Mahindra Bank up by 1.88%, BSE up by 1.54%, Bharti Airtel up by 1.29%, ICICI Bank up by 1.09% and Coal India up by 0.69%. On the flip side, Titan Company down by 3.80%, Adani Enterprises down by 3.75%, Hindalco Industries down by 3.15%, Bharat Electronics down by 2.35% and JSW Steel down by 2.35% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 79.23 points or 0.75% to 10,462.46, France’s CAC fell 100.07 points or 1.27% to 7,765.00 and Germany’s DAX lost 359.79 points or 1.41% to 25,089.40.

Asian markets settled lower on Wednesday, despite Wall Street’s record-high gains overnight. Market sentiment weakened as Brent crude oil climbed above $101 per barrel after Yemen's Houthi group claimed that it had carried out a series of drone and ballistic missile attacks targeting airports and military installations in Saudi Arabia. Investors were cautious over rising US Treasury yields ahead of the release of the Federal Reserve's September meeting minutes later in the day. Japanese market declined, led by fall in AI-related stocks as investors moved to lock in profits after the benchmark index rallied to a three-month high. Moreover, South Korea’s Kospi index dropped as market turned cautious ahead of Samsung Electronics’ preliminary third-quarter earnings report on Thursday. Meanwhile, Chinese market remained closed for the National Day Golden Week holiday and are scheduled to reopen on October 8, 2026.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

--

--

--

Hang Seng

24,130.50

-150.06

-0.62

Jakarta Composite

6,146.72

-46.21

-0.75

KLSE Composite

1,611.78

-21.57

-1.32

Nikkei 225

70,035.71

-648.27

-0.92

Straits Times

5,608.44

-93.10

-1.63

KOSPI Composite

6,803.90

-137.49

-1.98

Taiwan Weighted

49,806.37

-16.18

-0.03
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