Nifty Bank, Auto, Realty Slip 1% as India Inflation Hits 6.09%
India's Nifty Bank, Auto and Realty indices fell about 1% in early trade on November 13, 2026, after October retail inflation hit 6.09%, above the central bank's 6% limit for the first time in two years. Traders now weigh a possible rate hike in December.
India's Nifty Bank, Auto and Realty indices fell about 1% in early trade on Friday, November 13, 2026, after retail inflation jumped to 6.09% in October. It was the first time in two years that price growth broke the upper limit of the Reserve Bank of India's (RBI) target range.
The central bank must keep inflation between 2% and 6%. Investors fear it will raise interest rates to bring prices down, and higher rates tend to hurt banks, carmakers and property developers.
How the sectors moved
At 9:35 AM, the Nifty Auto index was the weakest sector gauge, down 1.17%. Twelve of its 15 stocks traded lower. Ashok Leyland, M&M and Maruti Suzuki led the losses, each falling between 1% and 2%.
The Nifty Bank index slipped 0.91%, with 13 of its 14 members lower. IndusInd Bank, HDFC Bank, AU Small Finance Bank, Canara Bank and Axis Bank each lost more than 1%. Punjab National Bank was the only gainer.
The Nifty Financial Services index fell 1%. Nifty Realty lost 0.81%.
What drove the inflation number
Retail inflation, measured by the consumer price index, rose from 5.54% in September. Food inflation climbed to 8.94% in October from 7.74% a month earlier, according to the Ministry of Statistics and Programme Implementation. Restaurant services and transport costs also pushed the headline figure up.
The last time inflation was higher was October 2024, when it stood at 6.25%.
What economists expect
Garima Kapoor, deputy head of research and economist at Elara Capital, said inflation is unlikely to cool right away, even though crude oil prices have eased on hopes of peace in West Asia. Earlier price increases are still working their way through the economy, she said. "We expect RBI to hike rates by another 50 bps over next 6 to 9 months," she said. A basis point is one hundredth of a percentage point.
Aditi Nayar, chief economist at ICRA, said a further 25 bps hike in December looks almost certain. The path of oil prices will shape any tightening in 2027, she said.
ICRA expects inflation to average about 6.2% in the October-to-December quarter of the fiscal year ending March 2027. That is slightly above the RBI's own projection of 6% for the period. ICRA said risks lean to the upside because of a deficient and uneven monsoon.
Analysts say inflation could stay above 6% for the next few months, leaving room for rate hikes at the December and February policy reviews.
The RBI's Monetary Policy Committee meets December 2-4, with its decision due on December 4.
