Sensex down 540 points
The Sensex tumbles by over 540 points at mid-session on aggressive selling by funds and general investors, after the RBI hiked key interest rate.business Updated: Jul 29, 2008 15:17 IST
Sensex tumbled by over 540 points at mid-session on Tuesday on aggressive selling by funds and general investors, after the Reserve Bank hiked key interest rate in its quarterly review of the monetary policy.
The Sensex, which commenced the day lower by 321 points, rolled down further to record a loss of 540.19 points at 1230 hrs as heavy-weight stocks led by Reliance Industries, ONGC, Infosys Technologies, ICICI Bank and HDFC Bank fell sharply.
The Reserve Bank on Tuesday hiked the key short-term inter-bank lending rate and mandatory cash reserve requirement by 0.50 per cent and 0.25 per cent respectively, a move that could increase interest rates for personal and commercial credit.
Traders said melting global stock markets was another dampening factor for the markets.