Sensex ends 356 points lower, Nifty at 11245

  • 1


Mumbai, Aug 2: The benchmark indices ended nearly 1% lower on Thursday following the 25 bps hike in repo and reverse repo rates by the Reserve Bank of India (RBI) on Wednesday.
The S&P BSE Sensex ended at 37,165, down 356 points while the broader Nifty50 index settled at 11,245, down 101 points.
Among individual stocks, Bharti Airtel settled 3.25% lower at Rs 371.20, while Maruti Suzuki ended 2.15% down at Rs 9,140.
Among sectoral indices, the Nifty Auto index settled nearly 1.5% down due to a fall in share prices Motherson Sumi Systems and Maruti Suzuki. The Nifty Realty index ended over 1.5% lower due to Godrej Properties and DLF.
On Wednesday, the RBI hiked policy rates for the second time in a row on fears of rising inflation rates.
Economists now expect the central bank to go in for a prolonged pause and wait to see the impact of the globally evolving scenario.
Following the rate hike, which was anticipated by many in the market, the policy repo rate stands at 6.50 per cent. The policy stance continues to remain neutral.
The Central Bank cautioned that India needed to “run a tight ship” to avoid getting affected by the currency war that had started all over the world.
It projected inflation at 4.6 per cent in the second quarter, and 4.8 per cent in the second half of the financial year 2018-19, with risks evenly balanced.
US Federal Reserve kept interest rates unchanged on Wednesday and characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.