Thaindian News

Mumbai, May 3 (IANS) Interest rate-sensitive stocks closed with losses at Indian equities markets Tuesday after the Reserve Bank of India (RBI) hiked key interest rates. A benchmark index closed 463 points down.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,979.31 points, closed at 18,534.69 points, down 463.33 points or 2.44 percent from its previous close at 18,998.02 points.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange shut shop at 5,565.25 points, down 2.39 percent.

In a major policy decision, the RBI hiked its short-term lending rates by 50 basis points to tame inflation and said the borrowing rate will henceforth remain 100 basis points below it.

Among the top losers were auto, banking and realty stocks. All 13 sectoral indices on the BSE ended in the red.

Broader markets also closed lower, with the BSE midcap index ending 1.86 percent down and the BSE small cap index closing 2.08 percent down.

Among top losers on the Sensex were Jaiprakash Associates, down 8.05 percent at Rs.85.05; Tata Motors, down 5.3 percent at Rs.1,163.45; Bajaj Auto, down 5.02 percent at Rs.1,366.95 and M&M;, down 4.47 percent at Rs.707.85.

The sole gainer on the Sensex was BHEL, which closed 0.19 percent up at Rs.2,014.60.

In the banking space, heavy-weights including State Bank of India, ICICI Bank and HDFC Bank fell after the RBI also increased savings bank deposit interest rate from the present 3.5 percent to 4 percent with immediate effect.

According to data available with market regulator SEBI, foreign institutional investors were net buyers to the tune of $2.62 million.

The market breadth was negative with 711 stocks advancing, 2,102 on the decline and 112 remaining unchanged.

Asian markets closed on the lower side as mining shares fell, pulled down by falling commodity prices.

The Chinese Shanghai composite index closed 0.71 percent up at 2,932.19 points, while Hong Kong’s Hang Seng ended 0.37 percent lower at 23,633.25 points.

The Japanese stock exchange was closed on account of a holiday.

Disappointing earnings results and debt woes of Euro zone economies resulted in the region’s stock exchanges trading lower.

Around midday, the French CAC 40 was trading 0.8 percent lower at 4,076.08 points, while the German DAX was ruling 0.96 percent down at 7,455.31 points.

The UK’s FTSE was down 0.23 percent at 6,056.07 points.