The Sensex opened the session 250.51 points down from the previous close of 14,106.58 and further slipped at 13,731.54, lost 375.04 points on heavy panic selling pressure across the sector triggered after the 50 basis point CRR and repo rate hike by the RBI. The broader-based Nifty of National Stock Exchange even slipped below 4,100 level, to a lowest since August 22, 2007 on dampen market sentiments.
Frontliners including DLF, Tata Motors, ICICI Bank, Infosys, Tata Steel, L&T, ONGC, HDFC, HUL, Maruti, Power Grid, Unitech, Ambuja Cements and BHEL slipped into deep red, however, TCS, Ranbaxy and Grasim gained.
The BSE sectoral index-Bankex dropped 2.8 per cent, Realty was down by 3.4 per cent, Auto down 2.2 per cent, IT, Capital Goods, FMCG, Power and Healthcare indices were down over one per cent in the opening trade.
RBI has hiked both the key rates
CRR and repo rate in the late last evening, in a strong move to contain inflation. CRR will be hiked in two phases of 25 bps each, first from July 5 to 8.50 per cent and next from July 19 to 8.75 per cent, and repo rate hike of 50 bps to 8.5 per cent with immediate effect. Sensex breaches the psychological level of 14k in the opening trade after crr and repo rate hike by the reserve bank.