Rattled by RBI’s steps to tighten liquidity in a bid to curb rupee volatility, the benchmark S&P BSE Sensex snapped a three-day winning spree and tumbled 183 points to finish at 19,851.23, dragged lower by financial sector stocks.
Bank stocks slumped on concern the Reserve Bank’s latest measures would spark an interest rate increase, besides making it costlier for lenders and financial companies to raise short-term funds. Rate-sensitive auto stocks also declined. The 30-share Sensex opened lower at 19,788.09 and dropped to a low of 19,649.58. It recovered later to 19,890.63, before ending at 19,851.23, still a loss of 183.25 points, or 0.91%. The index had gained 740.36 points, or 3.84%, in the previous three days.