Sensex falls 209 points as RBI hikes key rates
Sensex was red as banking, IT, auto, realty and auto stocks led the fall.
Mumbai: The Bombay Stock Exchange benchmark Sensex ended lower by 209 points Thursday on increased selling by funds and retail investors amid RBI`s move to raise its key policy rates by 25 basis points.
The 30-share Sensex, which had lost nearly 150 points at the start of the session, was down 112.55 points, or 0.61 percent, at 18,246.14 at 1220 hrs with banking, IT, auto, realty and auto stocks leading the fall.
The broad-based National Stock Exchange index Nifty down by 32.75 points to 5,478.40.
Brokers said the RBI`s decision to raise its short-term lending and borrowing rates, for the eight time since March 2010, by 25 basis points each, was in line with market expectations.
But raising of March-end inflation forecast to 8 percent from 7 percent projected earlier, had negative impact on the sentiments, they added.
RBI today hiked key short-term lending and borrowing rates by 25 basis points each in a bid to rein in inflation.
It also raised March-end inflation forecast to 8 percent from 7 percent projected earlier.