Sensex slumps 215 pts; RBI policy meet gets underway

Benchmark Sensex tanked over 215 points to close at 35,011.89 today as cautious investors trimmed their portfolios amid the RBI's monetary policy meeting getting underway.

The RBI's Monetary Policy Committee began its three-day meeting today amid speculation that it may hike the key interest rate on June 6 for the first time in about four-and-half years on account of firming inflation.

The 30-share Sensex opened on a strong footing on across-the-board gains amid positive global leads and hit a high of 35,555.59.

However, it soon slipped into the negative zone on massive selling in several heavyweights. It finally ended at 35,011.89, down 215.37 points or 0.61 per cent.

The broader NSE Nifty too ended lower by 67.70 points, or 0.63 per cent, at 10,628.50, after hovering between 10,770.30 and 10,618.35.

Meanwhile, foreign portfolio investors (FPIs) offloaded shares worth a net Rs 202.80 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 337.97 crore on Friday, as per provisional data.