Indian shares nosedived on Wednesday, as bond yields spiked ahead of interest rate decisions by the Fed and the Bank of England and the European Union announced a new sanctions package against Russia, including an embargo on Russian oil.
Sentiment was also dented after the Reserve Bank of India raised its key policy rate in a surprise move.
India’s central bank raised key interest rate by 40 basis points to 4.40 percent with immediate effect, citing rising inflationary pressures, geo-political tensions, high crude oil prices and shortage of commodities globally.
The decision was taken by the monetary policy committee (MPC) of the central bank in its off-cycle meeting held between May 2-4, RBI Governor Shaktikanta Das said.
The benchmark S&P BSE Sensex plunged as much as 1,306.96 points, or 2.29 percent, to 55,669.03 while the broader NSE Nifty index settled at 16,677.60, down 391.50 points, or 2.29 percent, from its previous close.
Broad-based selling was seen, with Bajaj Finance, Titan Company, Hindalco, Adani Ports and Apollo Hospitals Enterprise plummeting 4-7 percent.
Sensex, Nifty Tumble Over 2% On RBI’s Surprise Rate Hike
2022-05-04 10:35:46
