Sensex sheds 216 points on hike in interest rate

Mumbai, Apr 7 (UNI) The 30-share BSE Sensex plunged by 216.02 points or 1.6 per cent to settle at 12,786.77 points in the week ended on April 5.

Similarly, the S&P CNX Nifty index of NSE also shed 69.55 points or 1.8 per cent to close at a low of 3,752 points during the same period due to hike interest rates by RBI, brokers said.

The market staged a recovery from Monday's steep fall that was caused by RBI's surprise hike in short term interest rate and cash reserve ratio announced after the markets had closed on Friday March 30. Firm global markets and cooling of oil prices aided the recovery from lower level in the short trading week.

BSE Mid-Cap index lost 64.17 points or 1.1 per cent to 5,319.95 whereas BSE Small-Cap index lost 14.14 points or 0.2 per cent to 6,456.37 in the week.

A surprise hike in the repo rate and the cash reserve ratio (CRR) announced by the Reserve Bank of India (RBI) after trading hours on March 30 spooked the bourses on Monday (April 2). The Sensex plunged 616.73 points (4.72 per cent), to settle at 12,455.37. Bank and auto shares led the sharp fall on the day.

Sensex's intra-day fall of 646.58 points on that day was its biggest intra-day point fall since February 28, brokers added.

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