Indian equity markets remained under pressure on Thursday, October 8, extending the previous session’s losses. Around 10 AM, the Sensex was down nearly 400 points at around 72,240, while the Nifty 50 traded below the crucial 22,500 mark. The broader market also remained weak, with Bank Nifty down around 0.3%.

1. RBI’s Hawkish Policy Stance

The biggest domestic overhang remains the Reserve Bank of India’s decision to raise the repo rate by 25 basis points to 5.50%. The RBI also shifted its stance to calibrated tightening. The move has increased concerns around borrowing costs and liquidity, particularly for banks, NBFCs, real estate and other rate-sensitive sectors.

2. Crude Oil Above $100

Rising crude oil prices are adding another layer of pressure. Brent crude climbed above $102 per barrel as geopolitical tensions increased. Higher oil prices are negative for India because the country is a major crude importer and a sustained rise can increase inflation, widen the trade deficit and put pressure on the rupee.

3. Heavy FII Selling

Foreign investors continued to reduce their exposure to Indian equities. FIIs sold shares worth ₹6,121 crore on October 7, their second-largest daily outflow in October. DIIs provided support with purchases of ₹4,597 crore, but domestic buying was not enough to fully offset foreign selling.

4. Weak Global Cues and Higher US Yields

Global markets are also weighing on sentiment. US equities closed lower as long-term Treasury yields moved higher, while Asian markets opened largely in the red. Higher US yields and a stronger dollar can make emerging-market assets less attractive and add pressure to foreign flows into India.

5. Inflation and Currency Concerns

India’s September inflation data is now another key trigger. A Reuters poll expects consumer inflation to rise to around 5.4% from 4.82% in August, driven partly by food and energy costs. At the same time, the rupee remains close to record lows, adding to imported inflation concerns.

Key Technical Analysis

Sensex Technical Outlook

The Sensex is trading near 72,240 after slipping below 72,300 intraday. The immediate support zone is around 72,000, followed by the recent 71,300 area. On the upside, 72,700–73,000 remains the first hurdle. A sustained recovery above 73,000 would improve sentiment, while a break below 72,000 could extend selling pressure.

Nifty 50 Technical Outlook

The Nifty has lost the important 22,500 support on an intraday basis. The next support is around 22,400, followed by 22,200. On the upside, 22,700–22,800 is the immediate resistance zone. Analysts expect the broader trend to remain cautious while the index trades below 22,800.

Bank Nifty Technical Outlook

Bank Nifty was trading around 54,870 in early trade, keeping the 55,000 level as the key psychological resistance. The index needs to reclaim 55,200 for stronger recovery momentum. On the downside, 54,500 and 54,000 are important support levels. Continued pressure on rate-sensitive financial stocks could keep Bank Nifty volatile.

Today’s Key Takeaway

The Indian market remains caught between hawkish RBI policy, elevated crude prices, heavy FII selling and weak global cues. The 22,500 level on Nifty is critical today. Holding above 22,400 could support consolidation, while a decisive break below this zone may open the door towards 22,200.

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