The Indian benchmark indices began trading on a negative note on October 8, 2026, in the wake of the Reserve Bank of India’s (RBI) recent policy announcements. The Sensex saw a drop of over 300 points, while the Nifty index fell below the 22,550 mark, indicating a direct impact on investor sentiment due to the central bank’s decision to adopt a tighter monetary policy.

At the opening, the Nifty registered a marginal decline, starting at 22,599.05 and trading around 22,487.05, which reflected a decrease of 116 points or 0.51 per cent from its previous close of 22,603.05. Similarly, the Sensex commenced at 72,668 but was trading approximately at 72,303.45, a drop of 335.25 points or 0.46 per cent from its previous close of 72,638.70.

All major market indices were in negative territory during the early trading hours. However, the Nifty IT sector demonstrated growth, increasing by 1.93 per cent, followed closely by the Telecom sector with a rise of 1.39 per cent. In contrast, the Nifty Realty and Financial Services sectors experienced significant declines, each falling by more than one per cent.

Top Gainers and Laggards in the Market

Prominent gainers on the National Stock Exchange (NSE) included TCS, Tech Mahindra, HCL Technologies, Infosys, Sun Pharma, Titan, and Bharti Airtel, contributing to a mixed market sentiment. On the other hand, notable laggards comprised SBI Life, Bajaj Finance, and Coal India, which faced considerable selling pressure.

Similarly, on the Bombay Stock Exchange (BSE), TCS, Tech Mahindra, and Infosys were among the top gainers. In contrast, companies such as Bajaj Finance, ITC, and Tata Steel were adversely affected, indicating a robust divergence between sector performance.

In the global commodities market, Brent crude was trading at approximately $102.34 per barrel, while crude oil prices were around $89.81 per barrel, reflecting external factors that may influence Indian market dynamics.

Investor Sentiment and Economic Outlook

Ponmudi R, CEO of Enrich Money, commented on the cautious outlook for Indian equities, stating that the RBI’s decision to raise the repo rate to 5.50% has tightened domestic financial conditions. This tightening comes amidst global challenges, including elevated Treasury yields and geopolitical issues, which compound uncertainty for investors.

Ponmudi highlighted that the rupee’s continued weakness further puts pressure on the markets. The elevated US 10-year Treasury yield, near historically high levels, adds to the restrictive conditions for global finance. Additionally, persistent selling from foreign investors has limited the potential support that might offset the effects of the tighter monetary policies at home.

Market analyst Vipin Dixena noted that Indian equities are expected to remain under pressure following the RBI’s decision to shift its monetary stance. He indicated that the market is entering the Q2 earnings season, with TCS leading the reporting cycle. Dixena also mentioned that an immediate support zone exists between 22,500 and 22,400, with any break below this range potentially drawing attention to the 22,200 level. Conversely, a decisive breakout above 22,800 would be necessary to shift the current market structure positively.

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