RBI’s caution on inflation spooks markets (Second Lead)
January 25th, 2011 - 5:13 pm ICT by IANS
Mumbai, Jan 25 (IANS) Indian equities markets, especially front-line stocks, were spooked after the Reserve Bank of India, having increased key lending rates by 25 basis points Tuesday, hinted at more rate hikes to rein in high inflation.Reserve Bank of India (RBI) Governor Duvvuri Subbarao hiked the repurchase or repo rate to 6.5 percent from 6.25 percent and reverse repo rate to 5.5 percent from 5.25 percent. Other rates like cash reserve ratio and statutory liquidity ratio remained unaltered.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 19,227.42 points, closed at 18,968.62 points (provisional) - down 182.66 points or 0.95 percent from its previous close at 19,151.28 points.
The Sensex had climbed 189.71 points post-rate hike to 19,340.99 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange too followed a similar trajectory, ending 1.01 percent lower at 5,685.25 points.
Broader markets too edged lower with the BSE midcap index closing 0.42 percent down and the BSE smallcap index ending 0.29 percent lower.
Banking stocks were among the top losers, followed by FMCG, realty and healthcare scrips.
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- Sensex ends 0.5 percent up, gives up rate-hike gains (Second Lead) - Apr 20, 2010
- Rate hike fears weigh Sensex, broader markets lacklustre - Jul 25, 2011
- Sensex rallies 315 points as RBI hints at no more hikes - Oct 25, 2011
- Sensex ends 137 points lower (Second Lead) - Jun 16, 2011
- Indian markets quiet ahead of credit policy - Jan 24, 2012
- Sensex closes 117 points down, banking stocks fall over rate hike (Roundup) - Feb 23, 2011
- Sensex ruling moderately higher as rate cut hopes fade - Mar 12, 2012
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- Rate hike fears pull down Sensex 176 points (Roundup) - Jun 15, 2011
Tags: bank of india, basis points, bombay stock exchange, bse, cash reserve ratio, fmcg, line stocks, national stock exchange, rate hike, rate hikes, rbi governor, reserve bank of india, scrips, sensex, sensitive index, smallcap index, spooks, statutory liquidity ratio, subbarao, top losers