Sensex crashes 1,300 points after repo rate hike
Investors lost Rs 6.27 lakh crore after the Sensex ended 1,306 points lower after the Reserve Bank of India (RBI) announced a 40 basis points hike in repo rate to 4.40%.
After a rough start, the 30-share BSE Sensex came under massive selling pressure following RBI’s interest rate hike, closing 1,306.96 points or 2.29 percent down at a two-month low of 55,669.03.
Bajaj Finance was the biggest loser in the Sensex, falling 4.29 percent, followed by Bajaj Finserv, Titan, IndusInd Bank, HDFC Bank, Maruti and RIL. Only PowerGrid, NTPC and Kotak Mahindra Bank managed to finish higher, rising up to 2.75 percent.
The broader NSE Nifty tanked 391.50 points or 2.29 percent to finish at 16,677.60. The market capitalisation of all BSE-listed companies fell by Rs 6.27 lakh crore to stand at Rs 2,59,60,852.44 crore.
Recently, the RBI hiked the benchmark lending rate by 40 bps to 4.40 per cent to contain inflation that has remained stubbornly above the target of 6 per cent for the last three months.
The Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das also raised the level of deposits banks are required to maintain a cash reserve by 50 bps to 4.5 percent to draw out Rs 87,000 crore of liquidity from the banking system.
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