Sensex slides 199 pts; metal shares decline

The key equity benchmarks traded with modest cuts in morning trade after the RBI raised the repo rate by 25 basis points to 5.50% from 5.25%, in line with expectations. The Nifty traded below the 22,700 level. Metal shares declined after advancing in the past two trading sessions.

At 10:30 IST, the barometer index, the S&P BSE Sensex, tanked 198.67 points or 0.27% to 72,866.75. The Nifty 50 index lost 96.40 points or 0.42% to 22,676.25.

In the broader market, the BSE 150 MidCap Index declined 0.15% and the BSE 250 SmallCap Index rose 0.20%.

The market breadth was negative. On the BSE, 1,867 shares rose and 1,868 shares fell. A total of 255 shares were unchanged.

RBI hikes repo rate by 25 bps to 5.50%

The RBI Monetary Policy Committee (MPC) unanimously raised the repo rate by 25 basis points to 5.50% from 5.25%, in line with expectations, after its three-day meeting on 5-7 October. The RBI raised the repo rate for the first time in nearly three years and changed its policy stance from neutral to calibrated tightening. The Standing Deposit Facility (SDF) rate was raised to 5.25%, while the Marginal Standing Facility (MSF) rate and bank rate remained unchanged at 5.75%.

Buzzing Index:

The Nifty Metal index fell 1.40% to 12,423.35. The index rose 1.12% in the past two trading sessions.

National Aluminium Company (down 3.44%), Hindalco Industries (down 2.16%), NMDC (down 2.02%), Jindal Steel (down 1.98%), Vedanta (down 1.54%), Jindal Stainless (down 1.41%), APL Apollo Tubes (down 1.38%), JSW Steel (down 1.29%), Hindustan Copper (down 0.99%) and Tata Steel (down 0.95%) declined.

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