India Markets closed
1 / 5
Sensex after RBI’s monetary policy

How the markets reacted to RBI’s monetary moves

Although the Reserve Bank of India faced pressure from the government to cut rates, the central bank held the interest rates unchanged and lowered the cash reserve ratio by 25 basis points to 4.25 percent. Early this week, Finance Minister P. Chidambaram announced a plan to alter the country’s fiscal deficit based on the RBI’s monetary policy review.
The Sensex dropped 200 points after the Reserve Bank of India declared the changes in rates. Here’s a reaction of some of the sectors on Sensex after the central bank’s decision.