Sensex falls; surprise rate hike continues to hurt banks - Reuters India

Tweet Link this Share this Reuters Market Eye - The BSE Sensex fell more than 1 percent on Monday, heading for a second consecutive day of declines, after Reserve Bank of India (RBI) Governor Raghuram Rajan surprised markets in his maiden policy review on Friday by raising... Email Print Collection highlights and street style from Milan.  Slideshow  The snipers of Syria Highest-paid celebrity couples Mt Sinabung erupts One month in Syria London Fashion Week » Click here for more slideshows The Bombay Stock Exchange (BSE) building is pictured next to a traffic signal in Mumbai August 16, 2013. Credit: Reuters/Danish Siddiqui/Files Mon Sep 23, 2013 11:03am IST Reuters Market Eye - The BSE Sensex fell more than 1 percent on Monday, heading for a second consecutive day of declines, after Reserve Bank of India (RBI) Governor Raghuram Rajan surprised markets in his maiden policy review on Friday by raising interest rates to ward off rising inflation. The BSE Sensex was trading down more than 200 points while the broader Nifty fell over 70 points at 10.28 am. The RBI may raise policy rates again after shocking markets by increasing them in only his first meeting, signalling Rajan is willing to risk prolonging what is already the lowest economic growth in years in order to quash persistent inflation. The NSE bank falls 3.7 percent, adding to Friday's 4.1 percent slump. ICICI Bank Ltd (ICBK.NS) falls 3.9 percent while State Bank of India Ltd (SBI.NS) is down 3.95 percent. However, Titan Company Ltd (TITN.NS) gains 0.9 percent as India will start buying gold again after a two-month gap as the government and banks have agreed how new rules on imports should work, dealers say. (Reporting by Abhishek Vishnoi) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFk7OwUVAyvBSkZfptp5axwRYobkA&url=http://in.reuters.com/article/2013/09/23/sensex-nifty-rbi-bank-shares-rajan-icici-idINDEE98M03Q20130923

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