Punjab, Oct. 9 -- The Sensex fell 1,045.46 points on Thursday, closing at 71,593.24, and the Nifty gave up 371.25 points to end at 22,231.80. It was the second straight session of losses, and the biggest single-day fall since the RBI began signalling a hike.
Three things were pushing the same way
The rate decision is now behind the market, but the stance is not. The RBI hiked to 5.50 per cent on Tuesday and Governor Malhotra said cuts were off the table; equities spent Wednesday testing whether that was rhetoric and Thursday concluding it was not.
Crude did the rest. Brent went above 104 dollars, having been below 100 as recently as Monday. For a market whose entire inflation case rests on energy staying cheap, a four-dollar move in thre...