Fear over another repo rate hike by RBI affected investors’ sentiments negatively and stocks extended losses for the second session on Monday. Sensex plunged 363 points to end below the 20,000 mark while Nifty closed at 5,889.75, losing 122.35 points.
The banking and realty sectors, which are sensitive to interest rates, were the biggest losers. Mortgage lender HDFC, ICICI Bank and HDFC Bank dragged the Sensex lower by about 155 points.
The 30-share Sensex opened more than 200 points lower, extending a 383-point fall on Friday, when the RBI unexpectedly raised the repo rate to 7.5 per cent from 7.25 per cent, saying inflation had to be lowered to more tolerable levels.
The index traded between 19,826.30 and 20,199.81 before ending at 19,900.96, a drop of 362.75 points or 1.79 per cent. It has declined 745.68 points, or 3.62 per cent, in the past two sessions.
IT stocks Wipro, Infosys and TCS gained as the rupee weakened. The rupee on Monday depreciated by another 37 paise to close at 62.60 against the dollar following good month-end demand for the US currency from importers and a fall in local equities on rate hike concerns.
The rupee opened at 62.55 a dollar from the previous close of 62.23 at the interbank foreign exchange market. It moved in a range of 62.34 and 62.73 before ending at 62.60, a fall of 37 paise or 0.59 per cent. last Friday, it declined by 46 paise.