The benchmark indices tanked on Wednesday after RBI Governor Shaktikanta Das said that the Monetary Policy Committee (MPC) voted to hike the repo rate by 40 basis points.
At 2.25 pm, the BSE Sensex was trading nearly 1,000 points lower at 56,099. Nifty50 was trading lower by 300 points below 16,818 level.
The Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday in an unscheduled meet said that the Monetary Policy Committee (MPC) unanimously hike rates by 40 bps whilst remaining accommodative and supporting growth.
An off-cycle meeting between May 2 & May 4 was held by the MPC.
Meanwhile, the much-awaited LIC's IPO opened for subscription today. The government of India is selling 3.5 per cent stake in the country's largest IPO to raise Rs 21,000 crore. The IPO has been priced in the band of Rs 902-949 per share.
Life Insurance Corporations of India's (LIC) share sale via initial public offering was witnessing good response from investors as the IPO was subscribed 44 per cent by 14:18 pm, data from BSE showed.
LIC shares were witnessing strong demand from its policyholders as portion reserved for them was oversubscribed within couple of hours of opening. Portion of shares reserved for its employees was subscribed 52 per cent.
Earlier, the benchmark indices opened marginally higher on Wednesday. Sensex gained 64 points to open at 57,040 while Nifty rose marginally to 17,096.60.
Sixteen of the 30 sensex stocks opened in green with Powergrid, NTPC, Kotak Bank, and Wipro among major gainers. Bharti Airtel, Dr Reddy, Sunpharma, and Titan were among major losers.
The broader markets, meanwhile, opened in green. The BSE MidCap and SmallCap indices were up to 0.5 per cent higher.
Britannia, Power Grid Corp, ONGC, NTPC, and infosys were the major gainers on the NSE with up to 4.5 per cent rise.