Sensex plunges 171 points; banking stocks tank

Mumbai, Feb 3:

A benchmark index of Indian equities markets Tuesday was trading 170.66 points or 0.59 percent down as banking stocks plunged following the Reserve Bank of India (RBI)’s decision to keep key interest rates unchanged in its sixth bi-monthly policy review.

The apex bank kept the repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, unchanged at 7.75 percent.

The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 6.75 percent.

Good buying was observed in consumer durables and oil and gas sectors.

Heavy selling pressure was seen in banking and healthcare sectors.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 29,217.40 points, was trading at 28,951.61 points (at 11.58 a.m.) in the pre-noon session, down 170.66 points or 0.59 percent from the previous day’s close at 29,122.27 points.

The Sensex has touched a high of 29,253.06 points and a low of 28,935.39 points in the trade so far.

The S&P consumer durables index surged by 124.30 points and oil and gas index moved up by 127.77 points. However, bankex plunged by 458.43 points and healthcare index dropped by 109.21 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also was trading 56.30 points or 0.64 percent down at 8,741.10 points. IANS