MUMBAI: Indian share prices fell 0.85 per cent on 31 January 2007 after a hike in interest rates by the central bank, dealers said.
They said banking stocks fell as Reserve Bank of India , in a quarterly policy review raised its overnight borrowing or repurchase rate by a quarter percentage point to 7.5 percent, making it costlier for banks to borrow funds.
The 30-share Mumbai stock exchange index, Sensex, fell 121.04 points to 14,090.92 after hitting a record 14,282.46 last Thursday.
“The markets are likely to see choppy and rangebound trade until the union budget is announced next month,” said R. Balakrishnan, a director with Parallex Consultancy Services.
Tata Steel fell Rs 55.35 or 10.66 per cent to 463.95 after its takeover of British steel firm Corus for $13.7 billion was deemed too steep.