Indian equity benchmarks reversed their early recovery on Wednesday after the Reserve Bank of India (RBI) raised the benchmark repo rate by 25 basis points to 5.5%, ending the Sensex and Nifty’s two-session winning streak.

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The 30-share BSE Sensex fell 429.11 points, or 0.59%, to close at 72,638.70. The NSE Nifty declined 173.05 points, or 0.76%, to finish at 22,603.05.

Selling was broad-based, with metal stocks emerging as the biggest drag, followed by realty, auto, IT and consumer stocks. Nifty Midcap100 slipped 0.63%, while Nifty Smallcap100 gained 0.30%. PSU banks and media stocks managed modest gains.

Analysts said the RBI’s shift from a neutral stance to calibrated tightening increased caution despite the central bank’s stronger growth outlook. Higher inflation expectations, rising crude prices, foreign investor outflows, elevated global bond yields and rupee weakness continued to weigh on sentiment.

Brent crude rebounded above $101 a barrel, adding to concerns over inflation and corporate costs. Investors will now focus on the September-quarter earnings season for signs of demand strength, pricing power and companies’ ability to absorb higher input costs.

Technically, the Nifty has immediate support around 22,460–22,440. A decisive break below this zone could open the way towards 22,300. On the upside, 22,730–22,750 remains an immediate hurdle, with a sustained move above it potentially supporting a recovery towards 22,900.