Sensex snapped seven-session record-setting spree to end 85 points lower

The Reserve Bank's Monetary Policy Committee raised the benchmark lending rate by 0.25 percent for the second time in two months.

Benchmark Sensex snapped its seven-session record-setting spree to end 85 points lower today after the RBI hiked the policy rate on inflation concerns.

The Reserve Bank's Monetary Policy Committee raised the benchmark lending rate by 0.25 percent for the second time in two months.

The repo rate, at which the central bank lends to other banks, now stands at 6.5 percent.

The 30-share BSE Sensex, which had rallied to a fresh lifetime high of 37,711.87 in early trade, dived after the RBI announced its policy decision.

It staged a bounce-back in the late afternoon session, but finally closed lower by 84.96 points, or 0.23 percent, at 37,521.62 points.

The gauge had gained 1,110.21 points in the previous seven record-setting sessions.

The broader 50-issue NSE Nifty too slipped from its record high, shedding 10.30 points or 0.09 percent to end at 11,346.20. Intra-day, it shuttled between 11,390.55 and 11,313.55.

Interest rate sensitive auto, finance, and banking stocks finished with losses.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net of Rs 572.21 crore, while domestic institutional investors (DIIs) sold equities to the tune of Rs 290.87 crore yesterday, provisional data showed.

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