Sensex tumbles 353 pts after RBI hikes rates by 50 bps

The BSE benchmark Sensex today plunged the most in five weeks, shedding 353 points on sellingof bank and interest-sensitive stocks as markets reacted to the RBI's decision to raise interest rates by 50 basis points.

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

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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

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.