Mumbai/ New Delhi | Jagran Business Desk: The investors at the Dalal Street had a nightmare on Wednesday after the domestic benchmark indices plunged more than 2 per cent following the Reserve Bank of India's (RBI) decision to raise the repo rate after over two years.

The 30-share BSE Sensex closed at 55,669.03, falling by 1,306.96 points or 2.29 per cent. Similarly, the Nifty plunged by 391.50 points or 2.29 per cent to end at 16,677.60.

Titan was the worst performer on the Bombay Stock Exchange (BSE), which plunged by 4.47 per cent. It was followed by Bajaj Finsv, Bajaj Finance, IndusInd Bank, HDFC Bank, Reliance, Asian Paints, Maruti Suzuki India, Dr Reddy's, Axis Bank, Bharti Airtel, and State Bank of India (SBI).

Power Grid, meanwhile, was the top gainer, rising by 2.90 per cent. Besides, NTPC and Kotak Mahindra Bank ended in green.

The Sensex had opened at 57,184.21, trading 27.41 points or 0.05 per cent lower, while the Nifty slipped 33.45 points or 0.2 per cent to start the session at 17,069.10.

Earlier in the day, the RBI following an unscheduled MPC meet hiked the repo rate to control the inflation. Making the announcement, RBI Governor Shaktikanta Das said the central bank has also hiked the cash reserve ratio (CRR) by 50 bps to 4.5 per cent.

While the inflation has remained above the targetted 6 per cent since January, Das said the inflation print in April is also likely to be high.

The retail inflation print for March stood at 6.9 per cent.

The central bank had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low of 4 per cent.

The announcement comes days after the 595th meeting of the Central Board of Directors of the RBI.

On Monday, the central board of the RBI approved the nomination of Rajiv Ranjan as a member of the MPC. Ranjan replaced Mridul Saggar, who retired on April 30.

Ranjan is the third internal member (ex-officio) of the MPC. The next monetary policy meeting is scheduled for June 6-8.

In the last MPC meeting, it was decided to stick to an accommodative stance "while focussing on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth".

Posted By: Aalok Sensharma