Markets

Sensex slips from record after RBI hikes rate; bank, auto stocks drag

Benchmark Sensex snapped its seven-session record setting spree to end 85 points lower on Wednesday after the Reserve Bank of India (RBI) hiked the policy rate on inflation concerns.

The RBI’s Monetary Policy Committee raised the benchmark lending rate by 0.25% for the second time in two months.

The repo rate, at which the central bank lends to other banks, now stands at 6.5%.

The 30-share BSE Sensex, which had rallied to a fresh lifetime high of 37,711.87 in early trade, dived after the RBI announced its policy decision.

 

It staged a bounce-back in late afternoon session, but finally closed lower by 84.96 points, or 0.23%, at 37,521.62 points.

The gauge had gained 1,110.21 points in the previous seven record-setting sessions.

The broader 50-issue NSE Nifty too slipped from its record high, shedding 10.30 points or 0.09% to end at 11,346.20. Intra-day, it shuttled between 11,390.55 and 11,313.55.

Interest rate sensitive auto, finance and banking stocks finished with losses.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net of ₹572.21 crore, while domestic institutional investors (DIIs) sold equities to the tune of ₹290.87 crore yesterday, provisional data showed.


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Printable version | Aug 1, 2021 5:38:15 PM | https://www.thehindu.com/business/markets/sensex-slips-from-record-after-rbi-hikes-rate-bank-auto-stocks-drag/article24573491.ece

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