Sensex tanks over 1,300 points, ends below 55,669 after RBI hikes interest rate

Indian equity benchmarks on Wednesday plunged sharply after the Reserve Bank of India (RBI) decided to raise the repo rate by 40 basis points to 4.40 per cent. In the closing session, the 30-share BSE benchmark tumbled over 1,300 points and closed at 55,669. The NSE Nifty was trading below 16,800 points, after tanking nearly 400 points.

On Wednesday, the RBI increased the benchmark lending rate by 40 basis points to 4.40 per cent in a bid to contain inflation, which has remained stubbornly above the target zone of 6 per cent for the last three months.

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The surprise announcement central bank governor Shaktikanta Das followed an unscheduled meeting of the Monetary Policy Committee (MPC), with all six members unanimously voting for a rate hike while maintaining the accommodative stance.

After the sharp fall, the major losers included in the Sensex pack included Bajaj Finserv, Bajaj Finance, Titan, HUL, RIL, Asian Paints and HDFC Bank. While PowerGrid, Kotak Mahindra Bank, NTPC, Infosys and Wipro managed to remain among the gainers.