Nifty 50 Slides Below 22,500 As Global And Domestic Risks Mount

The Nifty 50 was down 127 points at around 22,476 as of 10:02 am on October 8, 2026, slipping below the psychologically important 22,500 mark. The decline comes a day after the index fell 173.05 points, or 0.76 per cent, to close at 22,603.05.

RBI Rate Hike Keeps Pressure On Equities

The biggest domestic trigger remains the RBI's monetary policy decision. On October 7, the central Bank raised the repo rate by 25 basis points to 5.50 per cent, marking its first rate hike since February 2023. It also shifted its policy stance from neutral to calibrated tightening. 

The move has raised concerns about higher borrowing costs and tighter financial conditions at a time when investors were already dealing with elevated crude oil prices and inflation risks.

Crude Oil Moves Above USD 100

Rising crude oil prices are adding another layer of pressure. Brent crude climbed around 2 per cent to nearly USD 102 a barrel, amid concerns over supply disruptions linked to tensions around the Gulf and Strait of Hormuz.

For India, higher crude prices can increase the import bill and put pressure on inflation as well as the rupee. This becomes particularly important after the RBI has already turned more cautious on inflation.

Foreign Selling Continues

Foreign investor selling is another factor weighing on sentiment. FIIs were net sellers of Rs 6,121.40 crore in Indian equities on October 7, while DIIs bought Rs 4,596.60 crore. The FII selling was the second largest daily outflow in October so far. 

Persistent foreign outflows have remained a concern for the domestic market, particularly as global bond yields and the dollar remain elevated.

Global Cues Remain Weak

Global markets are also providing little support. US equities ended lower on October 7, while long dated US Treasury yields moved higher. Asian markets were also trading under pressure on Thursday. 

Higher US yields can make dollar denominated assets more attractive and add to pressure on emerging markets such as India.

Rupee Weakness Adds To Concerns

The Indian rupee closed at around Rs 96.75 per USD on October 7, adding another concern for investors. A weaker rupee can make India's imported commodities, particularly crude oil, more expensive.

The combination of higher oil prices, a weaker currency and tighter monetary policy has therefore created a difficult backdrop for equities.

22,500 Becomes A Key Level

The Nifty's move below 22,500 puts the index back near the lower end of its recent trading range. The index had closed at 22,603.05 on Wednesday after touching an Intraday low of 22,546.30.

The immediate focus is now on whether the index can reclaim 22,500 or whether selling pressure pushes it towards the recent April low around 22,182.55.

With crude oil above USD 100, foreign selling continuing and the RBI moving towards tighter monetary policy, the market is likely to remain sensitive to global and domestic macroeconomic developments.

Disclaimer: The article is for informational purposes only and not investment advice.