The benchmark S&P BSE Sensex lost over 200 points and the NSE Nifty traded below the 11,300 mark on Thursday afternoon as investor sentiments were dampened with the hike in key lending rates by the Reserve Bank of India (RBI).
The RBI on Wednesday hiked its key lending rate by 25 basis points to bring the repo to 6.50 per cent citing upside risks to inflation.
According to market observers, heavy selling pressure was witnessed on banking and auto indices.
At 1.00 p.m., the wider Nifty50 on the National Stock Exchange traded at 11,284.95 points, lower by 61.25 points or 0.54 per cent from its previous level of 11,346.20 points.
The 30-scrip BSE Sensex, which had opened at 37,529.69 points, traded at 37,286.15 (1.00 p.m.) — lower by 235.47 points or 0.63 per cent from its previous close of 37,521.62 points.
On an intra-day basis, it has touched a high of 37,529.69 points and a low of 37,229.99 points so far.
The top gainers on the Sensex were Power Grid, Sun Pharma, Hindustan Unilever, Coal India and IndusInd Bank while Bharti Airtel, Kotak Mahindra Bank, Yes Bank, Maruti Suzuki and Vedanta lost the most.