Markets tumble post RBI monetary policy review, close in the red

Markets tumble post RBI monetary policy review, close in the red
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First Published: Tue, Jul 29 2008. 04 35 PM IST
Updated: Tue, Jul 29 2008. 04 35 PM IST
Livemint.com
New Delhi: Market failed to recover from sharp losses and closed in deep red on account of further monetary tightening by the RBI.
The BSE Sensex closed lower by 557.57 points at 13,794.31 and NSE Nifty ended down by 142.25 points at 4,189.85. The BSE Mid Caps closed with losses of 142.20 points at 5,488.58 and Small Cap ended down by 81.97 points 6831.01. The BSE Sensex touched an intraday high of 14,153.12 and an intraday low of 13,727.14.
Indian markets opened on the back foot tracking weak global cues and tumbled down further after the RBI’s quarterly review. The market kept on hovering in negative territory without showing any sign of recovery till the end the session. Both NSE Nifty and BSE Sensex closed with losses of more than 3%.
To curb inflation, Central bank announced a hike in Repo rate by 50 basis points to 9% and CRR by 25 basis points to 9%. These will be effective from 30th August 2008. This is the first time since October 2008 that the Repo rate will be at 9%. CRR is at 9% for the first time since November 1999.
Interest sensitive indices such as banking and reality lost most. They lost more than 8% and 5% respectively. The capital goods index also lost more than 5%. Heavy selling was also witnessed in oil & gas, metal, power and auto stocks baskets. The market breadth was weak with 963 stocks closing in the green as opposed to 1672 stocks closing in the red. 72 stocks remained unchanged.
Major losers from the BSE are HDFC Bank Ltd (8.71%), ICICI Bank Ltd (8.45%), Reliance Industrial Infra (7.99%), Maruti Suzuki (7.03%), SBI (6.84%), Tata Motors (6.84%), L&T Ltd (6.52%), M&M Ltd (5.54%), DLF Ltd (5.52%), HDFC (5.21%) and JP Associates (5.10%).
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First Published: Tue, Jul 29 2008. 04 35 PM IST
More Topics: Markets | Stocks | Sensex | Nifty | BSE |