January 25, 2011 / 15:25 IST
The benchmark Nifty has tested the 5700-level amid a choppy trade at 14:15 hours, led by fall in financial, technology, FMCG, healthcare and Anil Dhirubhai Ambani Group companies' shares. Index heavyweights Reliance Industries and ONGC too were on sellers' radar.
The market discounted today's key rates hike done by Reserve Bank of India, which was on expected lines. But the central made the market nervous by revising inflation upward and said economic growth would be lower in FY12. The RBI hiked repo--the rate at which it lends to banks-- and reverse repo--the rate at which it borrows from banks--rates by 25 bps each to 6.5% & 5.5%, respectively. After looking RBI report, experts as well as bankers warned that the central bank will continue to hike policy rates in calendar year to control rising inflation.OP Bhatt, chairman of the India's largest lender State Bank of India and Chanda Kochhar, managing director and chief executive officer of ICICI Bank said there has been an upward bias on interest rates. "25 bps hike in policy rates doesn't immediately translate into lending and deposit rate hikes, " both said.Religare Capital Markets too said, "Today
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