Shares of rate sensitive sectors such as real estate, infrastructure, automobiles and banking are under pressure falling by up to 12% on the bourses amid concerns that hardening interest rates will hit demand for new loans, housing and vehicles.
The Reserve Bank of India on Friday raised the repo rate by 25 basis points to 7.50% cent in a bid to check inflation.
The National Stock Exchange CNX Realty index which track the price movements of real estate stocks have plunged 8%, banking index Bank Nifty was down 6%, while CNX Auto and CNX Infra index are down 3% each at 1140