CLOSING BELL: The central bank increased repo rate by 35 basis points and lowered GDP growth forecast for FY23 to 6.8 per cent as it remained cautious of a sticky core inflation amid global turmoil

Sensex falls 216 pts, Nifty below 18,600 on RBI's moderately hawkish policy

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	<b>CLOSING BELL<br />
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	Stock market highlights:&nbsp;</b>The <strong>Reserve Bank of India&#39;s</strong> moderately hawkish monetary policy aggravated profit booking on Dalal Street on Wednesday. The central bank increased repo rate by 35 basis points and lowered gross domestic product (GDP) growth forecast for FY23 to 6.8 per cent as it remained cautious of a sticky core inflation amid global turmoil.</div>
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	Governor Shaktikanta Das said that the monetary policy committee (MPC) had retained its inflation forecast for the current financial year at 6.7 per cent. It, however, has made mild upward revisions to the inflation forecasts for the current quarter and the next quarter.&nbsp;</div>
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	&quot;The medium-term inflation target is exposed to heightened uncertainties&hellip;further calibrated monetary policy action is warranted to keep inflation expectations anchored, break the core inflation persistence and contain second-round effects,&quot; Das said. <a href="https://www.business-standard.com/article/finance/rbi-mpc-repo-rate-hiked-by-35-bps-accommodation-withdrawal-to-continue-122120700270_1.html" target="_blank"><strong>READ MORE</strong></a></div>
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	This, coupled with global weakness, pushed the benchmark S&P BSE Sensex index 216 points, or 0.34 per cent, lower at 62,411. The Nifty50, too, ended below the 18,600-mark at 18,560.5, down 82 points or 0.44 per cent. <span style="white-space:pre"> </span></div>
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	In the broader market, the BSE MidCap and SmallCap indices fell in tandem with the frontline indices and slipped about 0.4 per cent each.</div>
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	Sectorally, the Nifty <strong>FMCG index</strong> settled 0.96 per cent higher, after hitting fresh record high in the intra-day trade, after the Reserve Bank of India governor Shaktikanta Das said that going into October-December quarter of financial year 2022-23 (Q3FY23), economic activity seems to have gained strength in October. <a href="https://www.business-standard.com/article/markets/fmcg-index-hits-record-high-in-range-bound-market-dabur-hul-up-2-122120700685_1.html" target="_blank"><strong>READ MORE</strong></a></div>
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	That apart, the Nifty <strong>PSU Bank</strong> index, too, ended higher after the RBI extended the dispensation of an enhanced limit of the held-to-maturity (HTM) portfolio for government bonds till March 31 next year, enabling banks to better manage their investment portfolios. <a href="https://www.business-standard.com/article/finance/rbi-extends-dispensation-on-htm-bond-books-till-march-2024-122120700437_1.html" target="_blank"><strong>READ MORE</strong></a></div>
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	<strong>Rate sensitives :: Time to stay selective</strong></div>
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	Among individual stocks, Larsen & Toubro can rally to Rs 2,500-mark. Whereas, SBI and DLF need to conquer the near resistance zone. <a href="https://www.business-standard.com/article/markets/rbi-policy-time-to-be-selective-in-rate-sensitives-keep-dlf-sbi-on-radar-122120700410_1.html" target="_blank"><strong>READ MORE</strong></a></div>
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Business Standard

Sensex falls 216 pts, Nifty below 18,600 on RBI's moderately hawkish policy | News on Markets - Business Standard

RBI Policy LIVE :: CPI inflation projection kept unchanged at 6.7% for FY23

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SECTOR CHECK: PSB index extends gains on RBI's 35 bps hike

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ALERT :: Further calibrated policy needed to break core inflation persistent, says RBI Guv

MARKET CHECK | Nifty listless as RBI hikes repo rate by 35 bps

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ALERT :: Indian economy remains resilient amid global turmoil, says Shaktikanta Das