Indian markets crashed on October 8 after the Reserve Bank of India raised interest rates. The Sensex fell 1,168 points, or about 1.6 per cent, to close near 71,470. The Nifty dropped 394 points, or 1.74 per cent, to about 22,209.

The RBI raised the repo rate by 25 basis points to 5.5 per cent. It also changed its stance from neutral to “calibrated tightening”. The central bank projected GDP growth of 7.1 per cent for FY27. The hike was the RBI’s first in four years.

Foreign investors sold Indian shares for the ninth straight session. Brent crude stayed above $101 a barrel, adding to market worries. Rising oil prices hurt India’s import bill and fuel inflation fears.

About Rs 10 lakh crore of investor wealth was wiped out during the day. All major sectors ended in the red. Banking and financial stocks were the worst hit. Analysts said the market was not ready for a hawkish RBI.