The RBI has left key policy rates unchanged in spite of rising crude oil price and depreciation of the Indian rupee. The benchmark index was at 34,376.99, down 792.17 points post the announcement. Nifty50 index of NSE dropped 283 points to close at 10,316.
Shares of oil marketing companies such as Hindustan Petroleum, Bharat Petroleum and Indian Oil Corp hit 52-week lows after the govt announced that it will cut excise duties on petrol and diesel prices and Oil marketing companies will absorb Re 1 per litre.
The MPC kept policy repo rate intact under the LAF (liquidity adjustment facility) unchanged at 6.50% after its fourth bi-monthly meet held on Friday.
Nifty Bank index plunged 1.5%. YES Bank, SBI, Bank of Baroda, IDFC Bank and ICICI Bank lost up to 5.1%
The domestic currency crashed below the 74-mark against the USD for the first time ever after the RBI kept its key policy rate unchanged. The rupee was quoted 55 paise lower at 74.13 v/s the dollar quickly after the RBI announced its monetary policy.