Sensex loses 353 points on surprised rate hike, dismal nos
26 Jul 2011
Indian equity benchmarks shattered post more than expected hike in key rates by RBI coupled with hawkish statement from RBI and disappointing earnings from BHEL on Tuesday.
Even immediate reaction from banks by hiking base rates, which will increase interest cost for corporates as well as individuals going ahead, has dampened the investors' sentiment further in the late trade.
The 30-share BSE Sensex fell 353 points, to close at 18,518 and the 50-share NSE Nifty tumbled 105 points, to 5,575 led by fall in 46 stocks.
The Reserve Bank of India (RBI) hiked repo and reverse repo rates by 50 basis points to 8% and 7%, respectively.
Nifty slips over 100 points; realty, capital goods tumble
The benchmark indices continue to trade lower post RBI hiked short-term lending and borrowing rates sharply by 50 basis points. All BSE sectoral indices were trading in negative terrain. Heavy selling was seen in realty, capital goods, banks, auto, FMCG, power and metals stocks. The broader indices midcap and smallcap were down 1% each.