Sensex Crashes On RBI’s Rate Hike; Investors Lose Rs 7L Cr, 90% Nifty Stocks Tank

  • Investing.com
  • Stock Market News
Sensex Crashes On RBI’s Rate Hike; Investors Lose Rs 7L Cr, 90% Nifty Stocks Tank

By Malvika Gurung

Investing.com -- Indian equity benchmark indices fell sharply for the third straight session on Wednesday, with RBI’s surprise repo rate hike of 40 basis points to 4.4% in the afternoon pulling the domestic market lower. 

RBI’s Governor Shaktikanta Das, in an unscheduled address in the day, hiked the repo rate and cash reserve ratio, the latter by 50 bps to 4.5%. The move aggravated sharp falls in the domestic market, which was already trading lower.

Benchmark gauges Nifty 50 plunged 2.29%, hitting the lowest level since March 15, while Sensex crashed 1,306.96 points or 2.29% on Wednesday. Bond markets also witnessed sharp sell-offs during the day, with the 10-year benchmark government bond yield rallying 26 bps to 7.38%.

Investors on Dalal Street lost Rs 6.9 lakh crore worth of wealth in the session.

In a note sent to Investing.com by Madan Sabnavis, Chief Economist, Bank of Baroda (NS: BOB ), “The hike in repo rate will help to quell the build-up of excess demand pressures and hence slow down the growth in inflation though it cannot affect some of the components that are driven by global factors”.

All sectoral indices listed under the Nifty basket fell, with Nifty Media tanking 4.3% and Nifty Realty at 3.3%. Nifty Bank shaved 2.5%.

On 5 stocks on the Nifty50 index ended in green, led by ONGC (NS: ONGC ), as crude oil rose over 3%, Britannia (NS: BRIT ) and Power Grid (NS: PGRD ). Adani Ports (NS: APSE ) slumped the most, over 5%.

On the 30-scrip Sensex, only 3 stocks ended in green.

Even though the RBI rate hike was anticipated, the sudden announcement due to rising inflation dented investor sentiments, leading to a heavy selloff in the market today, stated Vinod Nair of ​​Geojit Financial Services.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Bbs Madhav @Bbs Madhav
    pIL to be filed in Supreme court to ban this type of announcements by government or the the companies who are in share market
    Like 0
  • Bbs Madhav @Bbs Madhav
    pIL to be filed in Supreme court to ban this type of announcements by government or the the companies who are in share market
    Like 0
  • Bbs Madhav @Bbs Madhav
    pIL to be filed in Supreme court to ban this type of announcements by government or the the companies who are in share market
    Like 0
  • rajesh gonugunta @rajesh gonugunta
    Plz dont take this kind of un schedule decision
    Like 1

Related Articles