RBI shocker sends market into a tizzy; benchmark indices plunge 2.3%

The bond markets also saw a sell-off, and the yield on the 10-year government bond rose to 7.37 per cent, hitting a three-year high

India’s benchmark indices posted their biggest decline in two months as financial heavyweights tanked after the Reserve Bank of India (RBI) hiked the repo rate by 40 basis points in a surprise move on Wednesday. Nervousness ahead of the US Federal Reserve’s monetary policy announcement added to investors’ worries.

The Sensex fell 1,307 points, or 2.3 per cent, to end the session at 55,669, while the Nifty50 index declined 391 points, or 2.3 per cent, to close at 16,677. This was the biggest fall for both the indices since March 7. 

The bond markets also saw a sell-off, and the