Sensex tanks 1,045 pts as RBI rate hike bites

Indian markets fell sharply on Thursday as the RBI’s surprise rate hike rattled investors. The Sensex dropped 1,045.46 points, or 1.44%, to close at 71,593.24.
The Nifty fell 371.25 points, or 1.64%, to end at 22,231.80. It was the second straight day of losses for both indices.
The Reserve Bank raised its repo rate by 25 basis points to 5.50% on Wednesday. It was the first hike in nearly four years. Investors fear higher rates will hurt growth.
Oil prices made things worse. Brent crude jumped 4.25% to $104.5 a barrel on fears of new US strikes on Iran. The rupee weakened to 96.88 against the dollar.
Banks and energy stocks led the fall. The total value of listed firms dropped by about 11 lakh crore rupees.
IT stocks were a bright spot. TCS, Infosys, Tech Mahindra, and HCL Tech gained up to 2% on hopes of strong US demand.
Analysts say markets will stay volatile as traders watch oil prices and global events.
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