By IANS,
Mumbai: A benchmark index of Indian equities markets declined over one percent Thursday on heavy selling pressure in auto, consumer goods, metal and banking scrips, as the central bank hiked key policy rates for the eighth time in 15 months to curb inflation.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened deep in the red at 18,227.16 points, ended at 18,166.14 points, down 1.05 percent or 192.55 points from the previous close of 18,358.69 points.
At the National Stock Exchange (NSE), the S&P CNX Nifty closed 1.03 percent or 56.60 points down at 5,454.55 points.
There was heavy selling pressure in interest rate-sensitive stocks as the country’s central bank hiked its short-term lending and borrowing rates by 25 basis points each for the eighth time in 15 months to tame inflation in a move that could make corporate, housing and auto loans dearer.
In its mid-quarter review of the monetary policy, the Reserve Bank of India (RBI) Thursday also revised upward its inflation forecast sharply to 8 percent by end-March, from 7 percent forecast in January and a lower 5.5 percent in November.
On the broader markets, the BSE midcap declined 0.24 percent and the BSE smallcap closed 0.36 percent down.
Most sectoral indices closed in the red. The BSE IT index fell nearly one and a half percent. The auto index slumped 1.10 percent and FMCG index declined 1.30 percent. Realty and metal indices also lost almost one percent.