IT stocks lift Nifty despite rate hike, FII selling pressure
The market opened after the RBI raised the repo rate by 25 basis points to 5.50% on Wednesday and shifted its stance from 'neutral' to 'calibrated tightening'
Equity markets started the day lower on October 8, 2026, as the Reserve Bank of India increased the repo rate by 25 basis points, marking the first hike since February 2023. This move towards a "calibrated tightening" stance raised concerns about higher fixed income returns and pressured valuations. Global cues also weighed on sentiment, with US markets retreating overnight and US Treasury yields near a decade high.
IT sector leaders like TCS, Tech Mahindra, HCL Technologies, and Infosys, however, outperformed, with TCS leading the charge ahead of its Q2 FY27 earnings announcement. Other sectors, such as financial and infrastructure stocks, saw more significant declines. Foreign institutional investors continued to sell equities, contributing to the downward pressure on the Nifty large-caps.
Analysts warned that unless FII flows stabilize or US yields retreat, domestic equities may remain vulnerable to further selling pressure.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
