Indian equity markets closed lower on Wednesday as investors turned cautious after the Reserve Bank of India’s rate hike and hawkish shift. The Nifty 50 fell 173 points, or 0.76 percent, to close at 22,603. The BSE Sensex dropped 429 points, or 0.59 percent, to 72,638. Selling was broad-based. Nifty Metal fell 2.31 percent, Realty lost 1.85 percent and IT declined 1.31 percent. Only media, PSU banks and private banks gained. The RBI raised the repo rate 25 basis points to 5.50 percent and changed its stance to calibrated tightening from neutral. Governor Sanjay Malhotra said inflation is no longer benign. Consumer inflation hit 4.82 percent in August, above the RBI’s 4 percent target for a third straight month. The rupee weakened to 96.77 per dollar, a five-month low. Gold traded around $4,136 an ounce and bitcoin around $82,500. Analysts expect more tightening. Elara Securities sees another 50 basis points of hikes this cycle. The central bank projected GDP growth of 7.1 percent for 2026-27.