Indian benchmark indices crashed sharply on Thursday afternoon, with the BSE Sensex plunging 1,063 points to 71,575.16 and the NSE Nifty falling 359.45 points to 22,243.60.
The steep decline followed the RBI's decision to hike the repo rate by 25 basis points to 5.50% and shift its stance to calibrated tightening.
Market sentiment was further bruised by simmering Middle East tensions, rising bond yields, and a 4% surge in Brent crude oil prices on Thursday.