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Below the Quote on Market 07th October 2026 by Vinod Nair, Head of Research, Geojit Investments Limited

"With the RBI delivering the rate hike on expected lines, the domestic market reacted more sharply to the shift in policy stance from neutral to calibrated tightening, which signals a turn in the rate cycle. While the upward revision to growth projections reaffirmed the strength of domestic fundamentals, the higher inflation outlook and the RBI's emphasis on price stability tempered sentiment.   Ahead of the U.S. FOMC meeting, the rupee remained under pressure amid rising U.S. yields, a stronger dollar and continued FII outflows, adding to the market decline.   Sectorally, banking stocks bucked the broader weakness on expectations of margin benefits from a higher-rate environment, while selling pressure remained widespread across most pockets of the market.

Looking ahead, the market focus will turn to the September-quarter earnings season for further direction. A resilient macroeconomic backdrop supports headline expectations, but investors will watch management commentary closely for evidence on whether the companies can absorb rising input costs, retain pricing power and sustain demand through the second half of the fiscal year."

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