Stock markets slump after RBI holds rate, lowers growth forecast

Mumbai: Indian equity markets on Wednesday fell sharply after the Reserve Bank of India decided to keep the key lending rates unchanged in its bi-monthly monetary policy.

The RBI has also lowered the forecast for India’s growth to 7.1 per cent from an earlier 7.6 per cent.

The sensitive index of the BSE which was ruling at around 26,334.79 points just ahead of the announcement, slipped to 26,255.88 points — down 136.88 points or 0.52 per cent.

Similarly, the wider 51-scrip Nifty of the National Stock Exchange (NSE) fell by 35.20 points or 0.43 per cent to 8,107.95 points.

The Sensex has touched a high of 26,540.83 points and a low of 26,252.09 points during the intra-day trade so far.

The BSE market breadth was tilted in favour of the bears — with 1,233 declines and 1,276 advances.