Sensex Retreats on RBI Rate Hike

India’s BSE Sensex fell about 0.6% to 72,635 on Wednesday, reversing gains from the previous session as investors remained cautious following the Reserve Bank of India’s policy decision, with the central bank raising its policy rate by 25 basis points to 5.5%. The rate hike came as inflation broadened beyond food and fuel, while higher oil prices added to price pressures. Brent crude traded around $101.70 a barrel as renewed Middle East tensions and a storm threatening US oil production raised concerns over supply disruptions. Among individual stocks, Titan fell about 3.4% after the jewellery retailer reported weaker-than-expected growth in its quarterly business update. Other notable laggards included BSE (-1.5%), HDFC Bank (-0.8%), Reliance (-0.4%), and ICICI Bank (-0.8%). On the upside, Asset Reconstruction Company climbed about 4.0% after its consolidated net profit rose 54.2% year-on-year in the June quarter.