Markets end flat on rate hike
The Bombay Stock Exchange benchmark Sensex, which had lost 48 points today, fell further by 19.51 points to 17,441.44, after rising to 17,505.73 as stocks in the realty, refinery and metal sectors recorded losses.business Updated: Jul 05, 2010 18:07 IST
The Bombay Stock Exchange benchmark Sensex on Friday ended flat with a negative bias of 19 points over fears that the hike in interest rates by the Reserve Bank may hamper growth.
The Sensex, which had lost 48 points on Friday, fell further by 19.51 points to 17,441.44, after rising to 17,505.73 as stocks in the realty, refinery and metal sectors recorded losses.
In a surprise move, the RBI had, on late Friday, hiked short-term lending and borrowing rates by 25 basis points to 5.50 per cent and 4 per cent respectively.
The broad-based National Stock Exchange index Nifty closed flat at 5,235.90.
Marketmen said that sluggish activity in brokerage houses due to the national bandh resulted in a dip in trading volumes, leading to weak trading sentiment.
Despite the broader index closing in the red, tech leaders Infosys and Wipro, banking major State Bank of India and auto giant Mahindra and Mahindra advanced, saving the market from a major fall.
Among the 30 Sensex components, 18 closed with losses and 12 closed with gains. Refinery, metals, consumer durables and realty sector stocks suffered the most.