Longest losing streak for sensex in a decade, benchmark index fall 1.4% to 18,569
An analyst call by RBI Governor Duvvuri Subbarao had deepened fears that the RBI's war against inflation could turn savage.
By ET Bureau | Updated:
Indian share prices have fallen for the longest period in a decade, as Sensex closed down for the ninth day running. An analyst call by RBI Governor Duvvuri Subbarao on Wednesday deepened fears that the RBI's war against inflation could turn savage.
RBI's hike in key rates follows similar rate rises in Brazil and China. If RBI keeps raising rates, consumer demand will fall and companies will be unable to pass on higher costs, squeezing profits and delaying wage revisions. All this is scaring a market already rattled by the 2G scam.
Globally, emerging-market stocks fell for a third day as Malaysia and the Philippines too raised interest rates. Brazil's Bovespa has been worst hit, slumping 8.2% this year.
RBI's hike in key rates follows similar rate rises in Brazil and China. If RBI keeps raising rates, consumer demand will fall and companies will be unable to pass on higher costs, squeezing profits and delaying wage revisions. All this is scaring a market already rattled by the 2G scam.
Globally, emerging-market stocks fell for a third day as Malaysia and the Philippines too raised interest rates. Brazil's Bovespa has been worst hit, slumping 8.2% this year.
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