Sensex falls 215 points in volatile trade post RBI rate hike

BSE Sensex showing certain indices in Mumbai. File
| Photo Credit: PTI

Equity benchmark Sensex declined over 215 points on Wednesday, weighed by losses in index heavyweight Reliance Industries, Bajaj Finserv and Tata Steel, after the Reserve Bank raised the key interest rate by 35 basis points.

Subdued Asian markets and continued selling by foreign investors also weighed on sentiment, traders said.

Extending its losses for the fourth straight session, the 30-share BSE Sensex ended 215.68 points or 0.34% lower at 62,410.68.

Similarly, the broader Nifty fell 82.25 points or 0.44% to 18,560.50.

NTPC was the top loser in the Sensex pack, shedding 2%, followed by Bajaj Finserv, IndusInd Bank, Tata Steel, Reliance Industries and Sun Pharma.

On the other hand, Asian Paints, HUL, L&T, Axis Bank and ITC were among the gainers.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant losses.

Stock exchanges in Europe were trading with gains in mid-session deals.

Meanwhile, international oil benchmark Brent crude declined 1.56% to $78.11 per barrel.

The Reserve Bank on Wednesday expectedly raised the benchmark lending rate by 35 basis points (bps) – the fifth increase since May – saying it remains focussed on bringing down the inflation to a tolerable limit.

Terming the Indian economy a bright spot in the otherwise gloomy world, the Reserve Bank of India (RBI) lowered its estimate of GDP growth to 6.8% in the fiscal ending March 31, 2023, from an earlier forecast of 7%.

It, however, kept the inflation forecast unchanged at 6.7% for the current fiscal and projected it to come below the upper tolerance limit of 6% in the fourth quarter of the current financial year.

Foreign Institutional Investors (FIIs) were net sellers in capital markets as they offloaded shares worth ₹635.35 crore on Tuesday, according to exchange data.