HomeBusinessSensex drops 1307 points after RBI's unexpected 0.40 percent repo rates hike

Sensex drops 1307 points after RBI’s unexpected 0.40 percent repo rates hike

Published on

After the surprise announcement by the Reserve Bank of India (RBI), to increase the policy repo rate by 0.40 percentage, the Indian stock market’s key indices, Sensex, and Nifty, plunged more than 2 percent.
The 30 stock S&P BSE Sensex slumped 1306.96 points or 2.29 percent to 55,669.03 points against its previous session’s close at 56,975.99 points.
The Sensex opened the day at 57.124.91 points, and then rose to a high point of 57.184.21 points during the morning trade.
The markets went negative in the morning trade. After Reserve Bank of India Governor Shaktikanta Die announced that the Monetary Policy Committee had unanimously decided to increase the policy repo rate by 0.40% or 40 basis points to 4.40% with immediate effect, the selling pressure grew.
This marks a change in the stance of the RBI on monetary policy.

Das stated that the Monetary Policy Committee (MPC), decided to hold an off cycle meeting on the 2nd and 4th of May 2022 in order to review the inflation-growth dynamics and assess the impact of developments following the MPC meeting from April 6-8, 2022.
The Sensex plunged to a low point of 55,501.60 after the RBI Governor’s announcement.
This is the third consecutive session with losses in key indices in India’s equities market. On Monday, the previous trading session, the Sensex lost 0.15 percent or 84.88 points.
Nifty 50 of National Stock Exchange fell by 391.50 point or 2.29 percent, to 16,677.60 Points. This is a drop from its previous session’s close of 17,069.10 Points.
Reliance Industries and HDFC Bank, both index heavyweights, were subject to heavy selling pressure. Reliance Industries plunged 3.14 per cent to Rs 2693.15. HDFC Bank dropped 3.34 percent at Rs 1356.25
Titan dropped 4.11% to Rs 2288.40. Bajaj Finance plunged 4.29 percent to Rs 6304.90. Bajaj Finserv fell 4.18 percent to Rs 1332.40. IndusInd Bank fell 3.98 percent to Rs 980.40
Three of the 30 scrips which are part of benchmark Sensex closed with positive results. Power Grid Corporation jumped 2.75 percent to Rs 237.50 NTPC, Kotak Bank closed positive as well.

More like this

Netflix reported 3.6 million US service cancellations during Q1

Netflix admitting that it is losing paid subscribers quickly, Antenna, a data analytics provider,...

Europe, UK markets fall as growth fears rattle investors

Fears about rising prices and slowing economies have spread to the UK and European...

Solar power grid on break water comes up at Adani’s Kattupalli Port

Adani Group's Kattupalli Port near here has created history by using breakwater rock area...