India, Oct. 7 -- Indian benchmark indices came under pressure on Wednesday after the Reserve Bank of India increased the policy repo rate by 25 basis points to 5.5%. The move was widely anticipated by the market, but the RBI's shift towards a 'calibrated tightening' stance added to concerns over borrowing costs and liquidity.

The Sensex fell as much as 547 points to 72,520.73, while the Nifty 50 declined 198 points to 22,578.25 during early trading. Both indices later recovered a portion of their losses. The Sensex climbed to an intraday high of 72,969.57, while the Nifty touched 22,701.60 as investors assessed the RBI's growth and inflation projections.

What Did RBI Announce?

At its October 5-7 meeting, the Monetary Policy Committee u...