Market reacts sharply to RBI policy

Mumbai, Oct 27 (ANI) : Markets on Tuesday plunged by more than 380 points, its biggest single day loss in over two months, on frantic selling sparked by the Reserve Bank's (RBI) quarterly monetary policy review.

The investors and market analysts reacted sharply as the Sensex plunged.

"Last week the Bombay Stock Exchange Sensex collected more than 500 points which came down by 70 to 80 points yesterday. Today the sensex has again tumbled down by 100 points. I would not compare this situation to the one that was in March 2009, which was caused due to the crisis in confidence," said Sunil Shah, a market analyst.

While one of the investors, Vipin Joshi said that as the Gross Domestic Product (GDP) growth is not powerful, there wouldn't be any changes as such.

"The government is worried about the inflation at this point of time. The Gross Domestic Product (GDP) growth is not at all powerful, so there won't be changes as such. Further, I don't think there will be anything that will favour the banks after the meeting," said Vipin Joshi, an Investor.

The markets are eyeing on the monetary policy statement to be announced by the Reserve Bank of India. The statement to be issued by the RBI will further decide the course of the interest rates of the banks.(ANI)