Dalal Street reversed Friday’s gains on Monday as early momentum gave way to institutional selling, dragging the BSE Sensex down 547.65 points to 71,924.68 and the Nifty 50 lower by 157.10 points to 22,363.35. A spike in sovereign bond yields, persistent FII equity sales stretching into an eleventh session, and Brent crude hovering above $103 weighed on rate-sensitive FMCG and IT stocks, even as the rupee posted a 1% recovery to 95.77 following the RBI’s specialized foreign exchange window for state refiners.

Dalal Street roared back on Friday as benchmark indices reversed Thursday’s steep sell-off, with the BSE Sensex advancing 879.09 points to 72,472.33 and the Nifty 50 climbing 288.65 points to 22,520.45. A stellar Q2 FY27 earnings beat by TCS—anchored by $3.1 billion in annualized AI revenue—fueled a 3% surge in IT stocks, while a pullback in Brent crude to $103 following a pause in US military threats against Iran helped domestic bulls overpower relentless foreign institutional selling.

Dalal Street suffered a sharp sell-off on Thursday, with the BSE Sensex plunging 1,045.46 points to 71,593.24 and the Nifty 50 dropping 371.25 points to a fresh 52-week low of 22,179.90. Over ₹10 lakh crore in market capitalization was erased as the RBI’s shift to ‘calibrated tightening’, Brent crude surging past $104 amid Hormuz tanker attacks, and relentless foreign institutional selling pressured rate-sensitive sectors, even as IT stocks bucked the trend ahead of TCS earnings.

Dalal Street’s two-day recovery halted on Wednesday as benchmark indices retreated following the Reserve Bank of India’s first interest rate hike in 44 months. The Nifty 50 slid 173.05 points to 22,603.05 while the BSE Sensex fell 429.11 points to 72,638.70 after the MPC raised the repo rate by 25 basis points to 5.50% and shifted its stance to ‘calibrated tightening’. Renewed upward pressure on Brent crude above $101, a weakening rupee at 96.70, and steep losses in rate-sensitive consumer durables and auto stocks drove the afternoon selloff.

Ending an extended period of policy accommodation, the Reserve Bank of India has raised the benchmark repo rate by 25 basis points to 5.50% and shifted its policy stance to ‘calibrated tightening’. Announcing the unanimous MPC outcome, RBI Governor Sanjay Malhotra cited stubborn inflation prints and geopolitical oil risks, upwardly revising the FY27 inflation projection to 5.2% while raising the annual GDP growth outlook to a robust 7.1%.

In a major boost for the ease of doing business, the GST Council has approved landmark compliance reforms that eliminate direct arrest powers for tax officials and raise the threshold for criminal prosecution to ₹5 crore. Chaired by Finance Minister Nirmala Sitharaman, the 57th Council meeting also slashed general penalty ceilings to ₹10,000, set up a committee to resolve genuine input tax credit disputes, and established an annual-only rate review cycle beginning April 1, 2027.