RBI raises rate to 5.5% and Sensex drops 422.97 points
Business
Markets took a hit on Wednesday after the Reserve Bank of India (RBI) raised its key interest rate to 5.5% and signaled no quick cuts ahead.
Sensex dropped 422.97 points and Nifty slid below 22,600 as investors reacted to the news.
RBI raises inflation forecast to 5.2%
The RBI also bumped up its inflation forecast to 5.2% for fiscal 2027, while expecting GDP growth of 7.1%.
Banking stocks like Kotak Mahindra Bank and ICICI Bank managed gains even as most other sectors struggled: Titan fell 3.75%, and metals were sold off hard.
Media stocks outperformed, but autos lagged behind.
Meanwhile, oil prices stayed above $90 a barrel and the rupee held steady against the dollar despite all the action in equities.