Sensex crashes by over 1,200 points on RBI's surprise repo rate hike

May 04, 2022 03:29 PM IST

The 30-share BSE benchmark tumbled to below 56,000 in late afternoon trade while the Nifty tanked 317 points to below 16,800

Equity markets fell sharply in late afternoon trade on Wednesday, with the Sensex crashing over 1,200 points after the Reserve Bank increased the benchmark lending rate to 4.40 per cent in a bid to contain inflation.


At 3.30 pm the 30-share BSE benchmark had tumbled by over 1,200 points, or around 2.2 per cent, to below 56,000. 

We're now on WhatsApp. Click to join.

The NSE Nifty also tanked 317.75 points or 1.86 per cent to 16,751.35.

On Wednesday, the Reserve Bank of India (RBI) increased the benchmark lending rate by 40 basis points to 4.40 per cent in a bid to contain inflation, which has remained stubbornly above the target zone of 6 per cent for the last three months.

The decision follows an unscheduled meeting of the Monetary Policy Committee (MPC), with all six members unanimously voting for a rate hike while maintaining the accommodative stance.

From the Sensex pack, Bajaj Finserv, Bajaj Finance, Titan, HUL, RIL, Asian Paints and HDFC Bank were the prominent losers.

In contrast, PowerGrid, Kotak Mahindra Bank, NTPC, Infosys and Wipro were the gainers.

Also Read | Explained: What are repo rate, reverse repo and monetary policy

On Monday, the BSE benchmark went lower by 84.88 points or 0.15 per cent to settle at 56,975.99 and the Nifty declined 33.45 points or 0.20 per cent to close at 17,069.10.

Equity markets were closed on Tuesday for Eid-Ul-Fitr.

On Wednesday, markets in Seoul and Hong Kong were in the red. Stock exchanges in the US surged in trade on Tuesday.

Meanwhile, international oil benchmark Brent crude jumped 3.63 per cent to USD 108.8 per barrel.

Foreign institutional investors offloaded shares worth 1,853.46 crore on Monday, according to stock exchange data.

"Exciting news! Hindustan Times is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!
Story Saved
Live Score
Saved Articles
My Reads
My Offers
Sign out
New Delhi 0C
Wednesday, October 04, 2023
Start 14 Days Free Trial Subscribe Now
Register Free and get Exciting Deals