Sensex dives despite RBI cut in rate

Mumbai,June-2 The sensex slid sharply soon after the Reserve Bank of India cut repo rate by 25 basis points (a quarter of a percentage point) to 7.25% as Dalal Street investors, in the run up to the central bank's policy review meeting on Tuesday, expected a sharper cut in rates to boost growth. At 11.10am, the sensex was down 250 points at 27,600.

Soon after the RBI announcement the index, which was down about 150 points before the central bank's decision was made public, lost another 200 points to around 27,500 level but recovered again.

Rate sensitive stocks like Hero MotorCorp, HDFC and SBI led the laggards.

Source:TOI