Stock markets snap three-day rally on rate hike fears; Sensex drops 318 points

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Updated - November 13, 2026 11:04 pm IST - Mumbai

The 30-share BSE Sensex dropped 318.56 points, or 0.39%, to settle at 81,592.45.

During the day, it tumbled 622.26 points, or 0.75%, to 81,288.75.File | Photo Credit: Reuters

Benchmark indices, the Sensex and the Nifty, ended lower on Friday (November 13, 2026), snapping a three-day rally amid expectations of a Reserve Bank of India (RBI) policy rate hike next month, after retail inflation surged to 6.09% in October.

The 30-share BSE Sensex dropped 318.56 points, or 0.39%, to settle at 81,592.45.

During the day, it tumbled 622.26 points, or 0.75%, to 81,288.75.

The 50-share NSE Nifty closed 155.05 points, or 0.61%, lower at 25,144.30.

This is the first major decline for both benchmark indices this month.

Among the Sensex firms, Mahindra & Mahindra, UltraTech Cement, Bharat Electronics, NTPC, Trent and HDFC Bank were among the major laggards, while Hindustan Unilever, Asian Paints, Bharti Airtel and Reliance Industries were among the winners.

Retail inflation surged to 6.09% in October, breaching the RBI’s upper tolerance limit for the first time in two years and prompting economists to anticipate a policy rate hike by the central bank next month.

Consumer price index (CPI) based retail inflation had risen to 5.54% in September, and a sustained uptick in food and beverages, restaurant services and transport inflation played a key role in pushing up the October headline number.

Data released by the Ministry of Statistics and Programme Implementation showed that food inflation spiked to 8.94% in October from 7.74% the previous month.

“The current correction suggests that markets are increasingly uncomfortable with the combination of elevated inflation, currency depreciation and rising crude prices.

While global uncertainties are adding to the cautious sentiment, the bigger concern is the potential second-order impact of higher energy prices on corporate margins, consumption and India’s current account deficit,” said Vikram Kasat, Chief Business Officer, Advisory and Dealing, at PL Capital.

With inflation moving beyond the RBI’s comfort band, expectations of monetary easing could also be pushed further out, limiting the scope for a sustained market recovery, he added.

“Indian equity markets closed lower on Friday, snapping their three-day winning streak as investors resorted to profit-booking following the recent extended rally.

Sentiment was dented by October retail inflation surging to 6.09%, breaching the RBI’s upper tolerance limit and raising concerns over a potential repo rate hike in December,” said Ponmudi R., CEO of Enrich Money, an online trading and wealth-tech firm.

On the macro front, crude oil and rising U.S. bond yields continued to weigh on domestic equities, he added.

Foreign Institutional Investors (FIIs) bought equities worth ₹7,830.60 crore on Thursday (November 12, 2026), according to exchange data.

In the broader market, the BSE MidCap Select index was up 0.09% and the SmallCap Select index 0.02%.

Among BSE sectoral indices, Realty dropped 1.70%, Auto 1.19%, Commodities 1.11%, Metal 0.93%, Oil and Gas 0.76%, Private Banks 0.68%, Insurance 0.67% and Bankex 0.64%.

Telecommunication, Capital Goods, Power and Hospitals were the winners.

A total of 2,462 stocks declined, while 1,965 advanced and 245 remained unchanged on the BSE.

Brent crude, the global oil benchmark, remained flat at $95.76 a barrel.

In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower, while Japan’s Nikkei 225 settled in positive territory.

Markets in Europe were trading marginally higher.

U.S. equity markets ended lower on Thursday.

On Thursday, the Sensex advanced 31.61 points, or 0.04%, to settle at 81,911.01.

The Nifty was up 44.30 points, or 0.18%, to end at 25,299.35.