The benchmark BSE S&P Sensex on Friday slumped the most in almost three weeks, closing down 383 points after the RBI unexpectedly hiked the repo rate to check inflation.
The Sensex fell as much as 595.21 points before ending 382.93 points lower, or 1.85 per cent, to 20,263.71. It was the biggest drop since a 651-point decline on September 3.
The index had on Thursday surged 684 points to an almost three-year high after the US Federal Reserve left its stimulus programme unchanged.
The Nifty index on the National Stock Exchange plunged 103.45 points, or 1.69 per cent, to 6,012.10. Also, MCX-SX's 40-share index ended at 12026.41, down 205.69 points.
RBI governor Raghuram Rajan, in his maiden policy review, unexpectedly hiked the repo rate or the short term lending rate by 25 basis points to 7.5 per cent with immediate effect in a bid to control inflation.
Interest-sensitive sectors such as realty and banking were the major losers as a higher cost of credit would hamper their business and reduce revenue.
On the 30-share Sensex, 21 stocks declined, led by ICICI Bank and HDFC Bank, which together contributed more than 120 points to the index's fall.
The realty sector index dropped the most, losing 6.53 per cent, followed by the banking index 4.18 per cent, the capital goods index 3.04 per cent and the auto index 1.58 per cent.
Stock markets in China, Hong Kong, Taiwan and South Korea were closed for a holiday. Indices in Japan and Singapore ended lower. In Europe, the key indices in France, Germany and UK moved up.
In the domestic market, 21 Sensex stocks ended lower, led by ICICI Bank (4.78 per cent), L&T (4.63 per cent), Sesa Goa (3.93 per cent), Hindustan Unilever (3.8 per centt) and HDFC Bank (3.63 per cent).
ITC was unchanged at Rs 355.40. However, Gail India firmed up by 3.51 per cent, followed by Sun Pharma 1.54 per cent, Coal India 1.26 per cent and BHEL 1.12 per cent.
Among the sectoral indices, S&P BSE-Realty dropped 6.53 per cent, followed by S&P BSE-Bankex 4.18 per cent, S&P BSE-Capital Goods 3.04 per cent and S&P BSE-Auto 1.58 per cent.
Foreign institutional investors bought shares worth a net Rs 3,543.84 crore yesterday, according to provisional data from the stock exchanges.
The market breadth turned negative as 1,432 stocks ended lower while 897 finished higher. Total turnover declined to Rs 2,550.88 crore from Rs 2,848.72 crore Thursday.
The Sensex fell as much as 595.21 points before ending 382.93 points lower, or 1.85 per cent, to 20,263.71. It was the biggest drop since a 651-point decline on September 3.
The index had on Thursday surged 684 points to an almost three-year high after the US Federal Reserve left its stimulus programme unchanged.
The Nifty index on the National Stock Exchange plunged 103.45 points, or 1.69 per cent, to 6,012.10. Also, MCX-SX's 40-share index ended at 12026.41, down 205.69 points.
RBI governor Raghuram Rajan, in his maiden policy review, unexpectedly hiked the repo rate or the short term lending rate by 25 basis points to 7.5 per cent with immediate effect in a bid to control inflation.
Interest-sensitive sectors such as realty and banking were the major losers as a higher cost of credit would hamper their business and reduce revenue.
On the 30-share Sensex, 21 stocks declined, led by ICICI Bank and HDFC Bank, which together contributed more than 120 points to the index's fall.
The realty sector index dropped the most, losing 6.53 per cent, followed by the banking index 4.18 per cent, the capital goods index 3.04 per cent and the auto index 1.58 per cent.
Stock markets in China, Hong Kong, Taiwan and South Korea were closed for a holiday. Indices in Japan and Singapore ended lower. In Europe, the key indices in France, Germany and UK moved up.
In the domestic market, 21 Sensex stocks ended lower, led by ICICI Bank (4.78 per cent), L&T (4.63 per cent), Sesa Goa (3.93 per cent), Hindustan Unilever (3.8 per centt) and HDFC Bank (3.63 per cent).
ITC was unchanged at Rs 355.40. However, Gail India firmed up by 3.51 per cent, followed by Sun Pharma 1.54 per cent, Coal India 1.26 per cent and BHEL 1.12 per cent.
Among the sectoral indices, S&P BSE-Realty dropped 6.53 per cent, followed by S&P BSE-Bankex 4.18 per cent, S&P BSE-Capital Goods 3.04 per cent and S&P BSE-Auto 1.58 per cent.
Foreign institutional investors bought shares worth a net Rs 3,543.84 crore yesterday, according to provisional data from the stock exchanges.
The market breadth turned negative as 1,432 stocks ended lower while 897 finished higher. Total turnover declined to Rs 2,550.88 crore from Rs 2,848.72 crore Thursday.