Sensex tanks over 500 points after RBI policy review

Sensex tanks over 500 points after RBI policy review Zee Media Bureau

Mumbai: The BSE benchmark Sensex on Friday tanked over 500 points in mid-session trade, as funds and investors booked profits after of RBI's mid-quarter policy review, amid a mixed Asian trend.

The Reserve Bank of India (RBI) in its mid-quarter review of monetary policy today raised the repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.25 percent to 7.5 percent with immediate effect.

The central bank has however slashed the Marginal Facility Lending by 0.75 percent. The bank has kept the Cash Reserve Ratio (CRR) unchanged at 4 percent.

Snapping its four-day long rising streak, the 30-share barometer lost by 508 points to 20,139 with metal, banking, consumer durables, IT and FMCG sector stocks succumbing to profit-booking.

The index had climbed 684 points yesterday to an almost three year high.

The wide-based National Stock Exchange index Nifty fell 147 points 5,967.

The rupee also extended losses, falling as much as 62.10/15 to a dollar from 61.93/61.99 previously.

Brokers said fresh selling, mostly of profit-booking nature, by participants after the Reserve Bank's mid-quarter monetary policy review today, mainly attributed fall in stock prices.

The US Dow Jones Industrial Average ended 0.26 per cent lower in the previous session.

With Agency Inputs