The Bombay Stock Exchange benchmark Sensex today dropped by over 156 points with interest-sensitive stocks coming under selling pressure amid fears of rate hike by RBI following unabated rise in food prices.
Extending the losses for the fifth day in a row, the Sensex closed 156.06 points lower at 19,135.96.
Marketmen said interest rate sensitive banking and realty stocks took a beating as investors feared imminent rate hike by the Reserve Bank of India (RBI) after food inflation rose to 8.76 per cent for the week ended April 16.
The National Stock Exchange index Nifty, too, dropped by 35.95 points to close at 5,749.50.
Meanwhile, the RBI Governor, Mr D. Subbarao, today met the Finance Minister, Mr Pranab Mukherjee, in New Delhi ahead of the annual policy meeting next week and reviewed the country’s macro economic situation.
Brokers said the fall was somewhat cushioned by Reliance Industries which gained 0.83 per cent. Hero Honda at 0.8 per cent and Maruti Suzuki at 1.27 per cent were other notable gainers.
HDFC Bank declined to a two-week low by losing 1.98 per cent, HDFC 1.35 per cent and State Bank of India 1.87 per cent.
The capital goods sector index suffered the most by losing 2.72 per cent. Realty index at 2.66 per cent was another worst hit. The banking index, too, fell by 1.76 per cent.
With selling pressure spreading over a broad front, the small-cap index declined by 1.57 per cent and the mid-cap index 1.03 per cent.