Sensex tumbles to two-year low despite RBI rate hike pause
A benchmark index for Indian equities on Friday plummeted in late trade and provisionally closed 346 points lower. Capital goods, realty and banking stocks were among the biggest losers.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 15,868.78 points, closed at 15,490.35 points (provisional), 346.12 points or 2.19 per cent, from its previous close at 15,836.47 points. The Sensex had risen more than 232 points during the day. The 50-scrip S&P CNX Nifty of the National Stock Exchange also fell sharply and closed at 4,646.35 points, down 2.11 per cent or 100 points from its previous close. Profit booking was also seen in stocks which rose in anticipation of the Reserve Bank of India not hiking interest rates.
As expected, the apex bank in its mid-quarterly review of the monetary policy decided to maintain the status quo on key interest rates. The central bank also indicated that it would from this point onward look at easing interest rates as inflation had started declining and was expected to moderate to 7 per cent by end-March. Broader markets also ended in the red with the BSE 500 index slipping 1.96 percent. The BSE midcap index was trading 1.69 per cent lower while the BSE smallcap index moved down 1.68 per cent.
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