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Sensex, Nifty End Lower As RBI Raises Inflation Forecast For Q3, Q4
(RTTNews) - Indian shares ended modestly lower on Wednesday as the Reserve Bank of India (RBI) raised its benchmark interest rates for the fifth consecutive meeting.
The Monetary Policy Committee voted 5-1 to hike its key interest rate, the repo, by 35 basis points to 6.25 percent from 5.90 percent, after having hiked the rate by a more aggressive 50 basis points at the September meeting.
Consumer price inflation forecast has been maintained at 6.7 percent for the current year while there were mild upward revisions to the inflation forecasts for the current quarter and the next quarter.
Weak global cues also kept investors nervous ahead of the European Central Bank, the Bank of England and the Federal Reserve policy meetings due next week.
The benchmark S&P BSE Sensex fell 215.68 points, or 0.34 percent, to 62,410.68 while the broader NSE Nifty index slipped 82.25 points, or 0.44 percent, to settle at 18,560.50.
Financials and automakers led losses, with Bajaj FinServ, SBI Life, Bajaj Auto and Tata Motors all declining around 2 percent.
The dollar climbed in overseas markets, as top U.S. banks warned of a recession in 2023 and better-than-expected data from the U.S. services sector rekindled expectations for rapid rate rises from the Federal Reserve.
Weak trade data from China rekindled worries about slowing growth, offsetting recent investor optimism over easing of COVID curbs in the country.
Oil prices were down around 2 percent in European trade, after having tumbled to an 11-month low in the previous session on concerns about the outlook for energy demand.
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