Sensex Dives Over 1,400 Points On RBI

Sensex dives over 1,100 RBIs in RBI’s move to raise surprise rates

Wednesday’s stock benchmark in India plummeted in the second half of the deal after the Reserve Bank of India (RBI) announced an increase in key interest rates. Surprisingly, RBI raised its repo rate by 40 basis points (bps) to 4.40 percent at today’s off-cycle conference. A repo rate is the rate at which a central bank lends money to a bank.

The 30 shares of BSE Sensex fell 1,419 points (2.49%) to 55,557, while the wider NSE Nifty fell 429 points (2.51%) to trade at 16,640.

The share of medium- and small-cap stocks was weak, with Nifty Midcap 100 down 1.78% and Small-cap down 1.88%.

All 15 sector gauges edited by the National Stock Exchange were trading in the red. NiftyConsumerDurables and NiftyFinancialServices were below the index, down 3.19% and 2.32%, respectively.

On the stock-specific side, Apollo Hospital was the biggest loser as stocks fell 6.43% to Rs 4,027.95. Adani Ports, Bajaj Finserv, Bajaj Finance and Hindalco were also one of the losers.