Equity benchmarks extended losses in the afternoon trade - the Nifty has touched the 5600 mark, reacting quite harshly to 50 basis points hike in key rates by the Reserve Bank of India.
The 30-share BSE Sensex shed 347 points, to 18,650 and the 50-share NSE Nifty tumbled 107 points to 5,594. Market breadth has widened its gap - three shares declined for every one share advanced on National Stock Exchange.
The central bank increased the repo rate (the rate at which banks borrow money from RBI) by 50 basis points to 7.25% to rein in inflation, which was almost 9% in March. It is a signal for banks to tighten interest rates.
The 30-share BSE Sensex shed 347 points, to 18,650 and the 50-share NSE Nifty tumbled 107 points to 5,594. Market breadth has widened its gap - three shares declined for every one share advanced on National Stock Exchange.
The central bank increased the repo rate (the rate at which banks borrow money from RBI) by 50 basis points to 7.25% to rein in inflation, which was almost 9% in March. It is a signal for banks to tighten interest rates.
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