The stock markets reacted negatively on Tuesday to Reserve Bank of India’s (RBI) decision to keep indicative policy rate (repo rate) unchanged to contain inflation. With hectic selling pressure in stocks, major indices crashed by over one per cent on Tuesday.The Bombay Stock Exchange 30-share sensitive index (Sensex) plunged 204.97 points or 1.10 per cent to close at 18430.85. Midcap stocks were down 1.01 per cent and smallcap stocks 1.26 per cent as selling was witnessed across the board.
Among the sectoral indices, banks plunged the most by 2.35 per cent, realty (2.28 per cent), consumer durables (2.26 per cent) and consumer goods (2.09 per cent).
Similarly, on the National Stock Exchange, the CNX Nifty crashed to its six week low to close at 5598 points, down 67.70 points or 1.19 per cent.
The rupee bounced back from fresh 5-week lows and ended 10 paise higher at 53.98 on heavy dollar sales.