The BSE Sensex plunged 792 points on Friday to end at a near six-month low of 34,376.99 after the RBI unexpectedly maintained status quo on the policy rate but changed its stance to “calibrated tightening” amid the rupee breaching the 74-mark. The central bank kept the interest rate unchanged at 6.5 per cent.
Sentiments were also bearish largely in tandem with a sell-off in global markets as US Treasury yields surged to multi-year highs on robust economic data and comments from the Federal Reserve, sparking fears of accelerating inflation, brokers said.
The 30-share index remained in the negative zone through the session. Selling activity gathered momentum after the RBI kept rates unchanged but changed its stance to “calibrated tightening”.