The Hindu : Business : Sensex skids 111 points

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Sensex skids 111 points

MUMBAI: The BSE benchmark index, Sensex slumped 111 points on Wednesday, declining for the second straight session, as China's key interest rate hike and a strengthening dollar rattled investor sentiment.

The Sensex decline was in line with sluggish Asian markets, as sudden rate hike on Tuesday by the Chinese central bank raised apprehensions that the move could adversely impact overall fund flows.

China's apex bank increased key rates by as much as 25 basis points for the first time in three years.

The Bombay Stock Exchange's 30-share index,, which had lost 186 points on Tuesday, ended the day at 19872.15, down by another 110.98 points — its lowest close since September 29, when the index had settled at 19956.24.

“The market was surprised by the sudden rate hike by China, and profit booking also played a major role in dragging down the Sensex,” Geojit BNP Paribas Research Head Alex Mathew said.

Rupee steady

Helped by frenzied capital inflows, the rupee closed stable for the second day on Wednesday at 44.34/35 against the U.S. currency despite weak equity markets. In another day of erratic movements at the inter-bank foreign exchange market, the rupee resumed sharply lower at 44.50/51 from Tuesday's close of 44.35/36 a dollar. — PTI

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