Closing bell: Sensex close 100 points lower at 34,082.71, Nifty ends below 10,500
Key indices on Wednesday fell straight for seventh straight session, dragged by banks after RBI sounded hawkish while keeping repo rate unchanged.
Key indices on Wednesday fell straight for seventh straight session, dragged by banks after RBI sounded hawkish while keeping repo rate unchanged.
The 30-share BSE Sensex was down 113.23 points at 34,082.71 and the 50-share NSE Nifty fell 21.60 points to 10,476.70.
Nifty Bank index ended with 141 points loss after RBI policy. Among the top gainers were, HPCL, Aurobindo Pharma, Coal India and ONGC were gainers.
The MPC noted that the inflation outlook is clouded by several uncertainties on the upside.
"The staggered impact of HRA increases by various state governments; pick-up in global growth which may exert further pressure on crude oil and commodity prices; and revised guidelines for arriving at the minimum support prices (MSPs) for kharif crops, increase in customs duty on a number of items and fiscal slippage indicated in the Union Budget," it reasoned.
"The MPC noted that the economy is on a recovery path, including early signs of a revival of investment activity. Global demand is improving, which should help strengthen domestic investment activity," RBI said.