New Delhi: The bellwether Sensex was down by 281.79 points after a hike in cash reserve ratio (CRR) by the Reserve Bank of India (RBI) late on Tuesday.
Earlier on Tuesday, the hike in CRR had taken its toll on share values during morning trade
The Bombay Stock Exchange (BSE) 30-Sensex, opened sharply lower with nearly 100 points downside gap to 1,3990.41 from Tuesday's close of 14,090.98 and tumbled to quote at 13,817.19 within five minutes of resumption of trading, a steep fall of 281.79 points.
Similarly, on the National Stock Exchange (NSE), the S&P CNX Nifty also crashed by 79.35 points to 3,965.20 from previous close of 4,044.55.
The CRR hike will rise from 5.5 per cent to 6.0 per cent in two stages, the first on February 17 and the second one on March 3.
This will lead to an increase in corporates loan rates, home loan rates and other loans.
As a result, there was heavy selling spree in banking stocks and the BSE-Bankex was quoted sharply lower by 412.16 points at 6,854.58 from previous close of 7,266.74.
(With inputs from PTI)
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