Markets collapse as RBI raises rates: Sensex slides 1300 points, Nifty drops below 16700

Sensex and Nifty saw a one way movement from bad to worse as the RBI shocked the street with a 40 bps rate hike. Over Rs 7 lakh crore worth of investor wealth was wiped out in a single session Sensex sank over 1300 points intraday and Nifty lost 16700 in trade.

Traders were already jittery ahead of the Fed meet where a 50 bps hike is already priced in and the unexpected draw down of liquidity hit the market hard.

Also Watch: RBI Governor Shaktikanta Das warns of much higher food prices despite rate hike shock

Here are the market highlights for the day-:

• Sensex and Nifty fall sharply, down over 2% at close

• Financials hit as RBI raises rates, Bank Nifty falls nearly 900 points

• CRR hike to add pressure on banks, to suck out Rs 87,000 cr of liquidity

• 5 stocks declined for 1 stock in the green as the advance-decline ratio skewed in the last 90 minutes of trade

• All the sectoral indices ended in the red with auto, bank, FMCG, power, metal, realty, healthcare, capital goods indices down 1-3 percent.

Also Watch: RBI shocks with repo rate hike, CRR hike