The Sensex shaved off yesterday's gains at 13:43 hours on the back of sell-off in Reliance Industries, TCS, HDFC, Infosys, ICICI Bank, NTPC, ITC, SBI and Bharti Airtel. Crude turned back above USD 111.5 a barrel could be another reason behind this fall in the afternoon trade.
"Anything that causes unrest in Saudi Arabia or causes a supply side event in the Middle East will cause a sharp rebound in prices," National Australia Bank commodity economist Ben Westmore said. But Japan continues to weigh on the market after that massive earthquake followed by tsunami and blasts in nuclear plants in northern region devastated Japan.
"There is so much uncertainty in Japan and its ability to drive economic recovery that it's something that is casting a shadow on the outlook for global growth," said Westmore.
But the market remained unaffected by the rate hikes as it already factored in the 25 basis points hike in repo and reverse repo rates by the Reserve Bank of India to control inflation.
"Based on the current and evolving growth and inflation scenario, the Reserve Bank is likely to persist with the current anti-inflationary stance," RBI said in its mid-quarterly review announced today.
Raamdeo Agrawal, Joint MD Motilal Oswal Financial Services Ltd said RBI has acted on expected lines. "Problem of inflation is still on top of RBI’s mind, so they have continued tightening monetary policy even at the cost of growth momentum slackening”.
The 30-share BSE Sensex fell 192 points to 18,166 and the 50-share NSE Nifty slipped 58 points to 5,452 Even the market breadth was in favour of declines; about 500 shares advanced as against 761 shares declined on National Stock Exchange.
"There is so much uncertainty in Japan and its ability to drive economic recovery that it's something that is casting a shadow on the outlook for global growth," said Westmore.
But the market remained unaffected by the rate hikes as it already factored in the 25 basis points hike in repo and reverse repo rates by the Reserve Bank of India to control inflation.
"Based on the current and evolving growth and inflation scenario, the Reserve Bank is likely to persist with the current anti-inflationary stance," RBI said in its mid-quarterly review announced today.
Raamdeo Agrawal, Joint MD Motilal Oswal Financial Services Ltd said RBI has acted on expected lines. "Problem of inflation is still on top of RBI’s mind, so they have continued tightening monetary policy even at the cost of growth momentum slackening”.
The 30-share BSE Sensex fell 192 points to 18,166 and the 50-share NSE Nifty slipped 58 points to 5,452 Even the market breadth was in favour of declines; about 500 shares advanced as against 761 shares declined on National Stock Exchange.
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