RBI action axes 86 pts from Sensex

The BSE benchmark Sensex was down by 86 points within minutes of the Reserve Bank of India8217;s move to raise short-term borrowing and lending rates today.

The 30-share index of the Bombay Stock Exchange,which has been on a gaining streak for the last seven sessions,was 86.05 points down,at 19,416.06,at 1215 hours,with blue-chips like Reliance Industries and Infosys losing ground.

Similarly,the National Stock Exchange index Nifty lost 30.50 points to 5,830.45 as investors reacted to the RBI action.

In its first-ever mid-quarter policy review meeting today,the RBI hiked the short-term borrowing rate by 0.50 percentage points and the lending rate by 0.25 percentage points.