 "BSE")
A surprise rate hike by the Reserve Bank of India (RBI) on Wednesday led to a general sell-off on Dalal Street. The benchmark BSE Sensex closed the day at 55,669 - down 2.3 per cent from the previous day. All sectoral indices ended the day in red, indicating that investors see a broader impact of the rate hike by the central bank.
The relative movement in the various sectoral indices, however, suggests that the biggest worry for equity investors is the potential decline in demand for interest rate-sensitive items, such as homes, motor vehicles, and consumer durables.
In comparison, investors see a
