RBI's rate hike throws markets into tailspin, Sensex falls 1,300 pts

Mumbai: Equities went into a tailspin on Wednesday after the Reserve Bank surprised the market with a mid-cycle rate hike in a bid to tame soaring inflation.
Investors became poorer by over Rs 6.27 lakh crore on as markets crashed after the RBI hiked the policy rate by 40 bps in a surprise move.
After a choppy start, the 30-share BSE Sensex came under massive selling pressure following RBI's interest rate hike, closing 1,306.96 points or 2.29 per cent down at a two-month low of 55,669.03. This was its third straight session of loss. On similar lines, the broader NSE Nifty tanked 391.50 points or 2.29 per cent to finish at 16,677.60.
The market capitalisation of all BSE-listed companies tumbled by Rs 6.27 lakh crore to stand at Rs 2,59,60,852.44 crore.
Bajaj Finance was the biggest loser in the Sensex pack, tumbling 4.29 per cent, followed by Bajaj Finserv, Titan, IndusInd Bank, HDFC Bank, Maruti and RIL.
Only three constituents managed to finish higher — PowerGrid, NTPC and Kotak Mahindra Bank, rising up to 2.75 per cent.
As many as 2,548 stocks declined, while 826 advanced and 101 remained unchanged.
The rupee appreciated by 8 paise to settle at 76.40 against the US dollar on Wednesday following RBI's surprise rate hike ahead of the US Federal Reserve's policy decision.