Indian stock markets fell sharply on Thursday after the RBI’s hawkish rate hike. The Sensex plunged 1,129 points, or 1.55 per cent, to 71,509 by afternoon trade. The Nifty 50 dropped 388 points, or 1.72 per cent, to 22,214.

The selling was broad-based. Fourteen of the 16 major sectoral indices traded lower. Nifty Metal fell 3.27 per cent and Nifty Pharma dropped 2.22 per cent. Only Nifty IT stayed in the green, rising 1.8 per cent as TCS climbed ahead of its results.

The RBI had raised the repo rate by 25 basis points to 5.50 per cent on Wednesday. It was the central bank’s first hike in nearly four years. The RBI also shifted its stance to calibrated tightening, signalling more hikes ahead.

Foreign investors sold shares worth ₹6,121 crore on Wednesday. It was their ninth straight session of selling. Brent crude above $101 a barrel and a weak rupee added to the pressure on Dalal Street.