Sensex tanks over 1,300 factors after RBI’s shock price hike

The share market prolonged losses on Wednesday after the Reserve Bank of India (RBI) introduced a shock enhance in key coverage price. The NSE Nifty 50 index was down 1.7% at 16,780 by 0844 GMT, whereas the S&P BSE Sensex fell 1,342.81 factors (2.36%) to 55,633.18.

India’s 10-year benchmark bond yield jumped to 7.41%, whereas the rupee strengthened towards the greenback to 76.27.

RBI Governor Shaktikanta Das mentioned that the Monetary Policy Committee (MPC) of the RBI in an off-cycle assembly held between May 2-4 hiked the repo price by 40 foundation factors (bps) to 4.40 per cent with instant impact in a bid to include inflation.

Addressing the media, Das mentioned that the MPC has unanimously determined to hike the rate of interest by 40 bps to 4.40 per cent. He mentioned that the RBI MPC met off-cycle to evaluate the worldwide progress.

The RBI governor mentioned that geopolitical tensions are forcing inflation greater in main economies and added that crude oil worth is risky and above $100 per barrel. Edible oil scarcity owing to Europe battle and ban by exporter, mentioned RBI Governor Shaktikanta Das.