Sensex, Nifty snap record rally after RBI hikes policy rate on inflation concerns : Bulletin: Business Today
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Sensex, Nifty snap record rally after RBI hikes policy rate on inflation concerns

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August 1, 2018

The Sensex snapped its seven-session record setting spree to close lower today after the RBI hiked the policy rate on inflation concerns.

The Reserve Bank's Monetary Policy Committee raised the benchmark lending rate by 0.25 per cent.

The repo rate, at which the central bank lends to other banks, now stands at 6.5 per cent. It is the first time since October 2013 that the rate has been increased at consecutive policy meetings.

The 30-share BSE Sensex, which had rallied to a fresh lifetime high of 37,711 in early trade, fell after the RBI announced its policy decision. The Nifty too touched an all-time high of 11,390 level intra day.

It staged a bounce-back in late afternoon session, but finally closed lower by 84  points, or 0.23 per cent, at 37,521 points.

The index had gained 1,110.21 points in the previous seven record-setting sessions.

The Nifty too slipped from its record high, shedding 10 points or 0.09 per cent to end at 11,346. Intra-day, it shuttled between 11,390 and 11,313.

Interest rate sensitive auto, finance and banking stocks finished with losses.

While the BSE auto index fell 0.77% or 189 points to 24,307, the BSE banking index fell 0.55% or 171 points to 30,834 level.

 Market breadth was positive with 1403 stocks closing higher compared with 1296 ending in the red on BSE.
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