The 30-share Sensex and the 50-share Nifty closed below their psychological levels of 19,000 and 5700 respectively, as investors dumped bank shares. A 5% fall in index heavyweight Hindustan Unilever on the back of lower than expected quarterly numbers, added to the downtrend.
The Reserve Bank of India today raised repo rate--the rate at which it lends to banks--and reverse repo rate--the rate at which it borrows from banks--by 25 basis points each, as it tried to check the surge in inflation. A section of the market was expecting the RBI to raise key rates by 50 basis points, as the rapidly rising inflation is now threatening to undermine economic growth.
There are lots of market fall and other many issues related to the banks and credit. Reserve bank may get proper solution for this and they will surely solve that in proper way.