Share Market Crash: The Reserve Bank of India (RBI) has raised the repo rate, sending the market into a tailspin. The Sensex was down 1,306.96 points at 55,669.03 and the Nifty was down 391.50 points at 16,677.60 after the RBI hike.
Today, the third trading day of the week, the stock market started the morning trading with a positive uptrend. Investors were also excited as LIC’s IPO opened today.
But in the afternoon, as the Reserve Bank raised the repo rate, there was a major shake-up in the market during the sell-off. While watching, the Sensex fell 1500 points to 55,501 points.
The Sensex was down 1,306.96 points at 55,669.03 and the Nifty was down 391.50 points at 16,677.60 after the RBI hike.
Among sectoral indices, the Nifty Bank Index fell 2.5% and the Financial Index fell 2.6%. The Nifty Realty index lost 3.3%. It was thus clear that an increase in interest rates would affect these sectors.
The increase in the repo rate will have an impact on the industry. This is because the need for housing in the post-epidemic environment has been positively revived.
It must be maintained. The perennial confidence of the real estate sector is determined by the low interest rate. This is because it promotes affordable prices and also provides the necessary impetus for the growth of the economy with the real estate sector affiliated with many industries.
At the end of today’s stock market, all sector indices ended in decline. The BSE midcap index was down 2.63 percent and the smallcap index was down 2.11 percent.
The repo rate was 4.40%
Earlier, at 2 pm, Reserve Bank of India Governor Shaktikant Das announced that the repo rate would be hiked. The Reserve Bank has raised the repo rate by 0.40%. As a result, the repo rate has risen to 4.40 per cent from 4 per cent.
Debt EMI will increase
The change in the repo rate by the Reserve Bank has paved the way for banks to raise interest rates on loans. As the repo rate increases, the EMI of your home loan and car loan will increase in the coming days.
Earlier, the RBI had left the repo rate unchanged for the 11th consecutive time at the first monetary review meeting of the current fiscal.