India Stocks: India benchmark shares fall as inflation woes overshadow RBI support measures

Tech Mahindra

12/10/2026 11:21

Updates for markets close
By Bharath Rajeswaran
Oct 12 (Reuters) - Indian benchmark indexes fell on Monday as investors assessed the Reserve Bank of India's latest measures to support the rupee, while concerns over elevated oil prices and a weaker monsoon kept risk sentiment subdued.
The Nifty 50 .NSEI fell 0.7% to 22,363.35, while the BSE Sensex .BSESN lost 0.76% to 71,924.68. 
Both indexes snapped their longest weekly losing streaks in 25-years on Friday after rebounding from multi-year lows, but Monday's early gains faded.
Investors now await domestic inflation data for further clues on the policy outlook after the RBI raised rates last week.
"Market sentiment remains hostage to crude prices and a weaker monsoon," said Anita Gandhi, head of institutional business at Arihant Capital Markets, adding that they could "intensify price pressures, weaken near-term consumption and ultimately constrain corporate earnings."
Persistent foreign outflows and a busy primary market that has diverted liquidity from secondary stocks have overshadowed support from the central bank's measures and largely resilient quarterly business updates, Gandhi said.
Over the weekend, the RBI redirected oil firms' dollar purchases and tightened hedging rules, helping the rupee recover 1% from near-record lows in its sharpest rally in six months.
Brent LCOc1 rose to $106 despite US President Donald Trump saying Russia and Ukraine would halt energy attacks, but persistent Middle East tensions kept prices elevated, weighing on world's third largest oil importer, India.
Twelve of the 16 major sectoral indexes advanced. Small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 rose 1.4% and 0.1%, respectively, supported by strong domestic fund inflows.
The banking .NSEBANK and IT .NIFTYIT indexes fell 0.6% and 0.8%, respectively, after gaining 1.4% and 3% on Friday.
Apollo Hospitals APLH.NS fell 3.2%, Max Healthcare MAXE.NS declined 2% and Medanta MEDN.NS edged down 0.3% after the Supreme Court questioned the government on why it could not control the drug market, amid concerns over high mark-ups.
D-Mart operator Avenue Supermarts AVEU.NS dropped 4.3% after brokerages flagged margin pressure following its September-quarter results. 
Tech Mahindra TEML.NS fell 2.9% on concerns that growing competition from satellite-based mobile services could curb telecom spending. 



 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich, Janane Venkatraman and Sherry Jacob-Phillips)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))