MUMBAI: Equity benchmark Sensex declined over 215 points on Wednesday led by losses in index heavyweights Reliance Industries, Bajaj Finserv and Tata Steel after the Reserve Bank hiked key interest rate by 35 basis points.
Traders said weakness in Asian markets and selling by foreign investors also weighed on sentiment.
Extending its losses for the fourth straight session, the 30-share BSE Sensex closed 215.68 points, or 0.34 per cent, lower at 62,410.68.
Similarly, the broader Nifty fell 82.25 points, or 0.44 per cent, to 18,560.50.
NTPC was the top loser in the Sensex pack, falling over 2 per cent, followed by Bajaj Finserv, IndusInd Bank, Tata Steel, Reliance Industries and Sun Pharma.
On the other hand, Asian Paints, HUL, L&T, Axis Bank and ITC were among the gainers.
In other parts of Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo closed with heavy losses.
Stock exchanges in Europe were trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude fell 1.56 per cent to USD 78.11 per barrel.
The Reserve Bank on Wednesday expectedly raised the benchmark lending rate by 35 basis points (bps) – the fifth hike since May – saying it was focused on bringing down inflation to a tolerable range.
Terming the Indian economy as a bright spot in an otherwise gloomy world, the Reserve Bank of India (RBI) cut its GDP growth forecast to 6.8 per cent for the fiscal year ending March 31, 2023, from 7 per cent earlier. was lower than forecast.
However, it kept the inflation forecast unchanged at 6.7 per cent for the current fiscal and projected it to come down to the upper tolerance limit of 6 per cent in the fourth quarter of the current fiscal.
Foreign institutional investors (FIIs) were net sellers in the capital market, selling shares worth Rs 635.35 crore on Tuesday, according to exchange data.