The Sensex and Nifty posted their biggest weekly decline in over two years on Friday after, in a surprise move, the Reserve Bank of India (RBI) today kept the repo rate unchanged at 6.5%. The announcement sent the rupee diving below the 74/$ mark for the first time ever, while the stock market tumbled. The Sensex slumped 966 points to an intra-day low of 34,202.22 points, while the Nifty tanked over 330 points to an intra-day low of 10,261.90 points.
The benchmark BSE Sensex closed Friday’s trade 792.17 points or 2.25% lower at 34,376.99 points. Reliance Industries alone wiped off over 200 points from the Sensex index. Other major losers on the Sensex were HDFC, ITC, ONGC, ICICI Bank, SBI, Maruti Suzuki, LT, Axis Bank, M&M and Kotak Bank. The NSE Nifty closed at 10,316.45 points, down 282.80 points or 2.67%. All sectoral indices, barring the Nifty IT index, closed in the red.
The Reserve Bank of India (RBI) today kept the repo rate unchanged at 6.5%. However, the MPC changed the stance from ‘Neutral’ to ‘Calibrated Tightening’. RBI’s move came as a surprise for the equity markets as market watchers and top economists were widely expecting a 25 basis point hike once again after June and August. Oil and gas stocks continued to drag the equity markets lower, coupled with negative global cues and a weak rupee.