Sensex tumbles 353 pts after RBI hikes rates by 50 bps | business | Hindustan Times
Today in New Delhi, India
Dec 04, 2016-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Sensex tumbles 353 pts after RBI hikes rates by 50 bps

business Updated: Jul 26, 2011 17:14 IST

PTI
Highlight Story

The BSE benchmark Sensex on Tuesday plunged the most in five weeks, shedding 353 points on selling


of bank and interest-sensitive stocks as markets reacted to the RBI's decision to raise interest rates by 50 basis points.



Heavy losses by engineering giant L&T, country's leading banks SBI,ICICI Bank and HDFC, along with Sensex leader


Reliance Industries contributed the most to the fall in the BSE's bellwether index.



The Bombay Stock Exchange's 30-share index, which had started on an upbeat note, tumbled within few minutes of the


RBI announcing a 50 basis points hike in interest rates, well above the market expectations.



The aggressive stance by the central bank to arrest a towering inflation pushed the 30-share Sensex down by 353.07


points at 18,518.22, a level last witnessed on June 20. All its sectoral indices closed in negative zone.



Brokers said markets were expecting a 25 basis points hike and had factored that in the last few sessions. They said


investors, spooked by hike in interest rates by 50 basis points, sold interest-rare sensitive stocks.



Sensex has lost 9.4 per cent in the year so far as high inflation and hardening of rates continues to dent the


corporate earnings and outlook.



Broad-based National Stock Exchange index Nifty fell by 105.45 points to 5,574.85 after rising to 5,702.25 intra-day.