The Bombay Stock Exchange benchmark Sensex on Thursday fell by 182 points to a two-week low as investors offloaded stocks ahead of the RBI policy meeting on April 20.
After opening higher by 153 points, the 30-share index fell back to close with a loss 182.70 points to 17,639.26, its lowest level since March 31, as investors feared that the RBI might raise key rates in its annual credit policy to be announced on April 20 to control inflation which is nearing double digits.
Higher interest rates could temper demand for loans and could lead to reduced spending in the economy.
Among the 30-index stocks, 20 ended with losses. The trend worsened after the index-heavy Reliance Industries and private lender ICICI Bank fell 2.72 per cent and 2.55 per cent respectively.
Meanwhile, inflation rose to a 17-month high of 9.90 per cent in March from 9.89 per cent in the previous month.
The wide-based National Stock Exchange index Nifty fell by 49.35 points to 5,273.60 points, after touching the day’s high of 5,373.15.
A mixed pattern in Asian region and weak opening in Europe further fuelled the trading sentiment.
The refinery sector index suffered the most by losing 1.83 per cent to 10,145.73, followed by banking index by 1.42 per cent to 10,558.74.
Capital goods index fell by 1.40 per cent to 14,063.30, FMCG index by 1.15 per cent to 2,833.56 and metal index by 0.27 per cent to 18,196.18.
