BENGALURU: Indian shares on Friday were mostly unchanged after the country’s central bank hiked its key policy rate, as expected, to tackle persistently high inflation.
The NSE Nifty 50 index was flat at 16,813.30, as of 0441 GMT, and the S&P BSE Sensex was unchanged at 56,443.68.
They were at similar levels before the announcement.
The Reserve Bank of India raised the key policy repo rate by 50 basis points–inline with economists expectations–on Friday and said it will stay focussed on withdrawal of monetary accommodation.
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The central bank’s monetary policy committee (MPC) has hiked the key policy rate by 190 bps since May to 5.9% to cool off domestic retail inflation that has stayed above the RBI’s upper tolerance limit of 6% since January.
India’s benchmark indexes have fallen about 3% since the RBI’s decision in early August to raise the repo rate by 50 basis points.
Investors also wait to hear from the RBI on how it plans to tackle the depreciating rupee after having spent massive amount of forex reserves to arrest the currency’s fall against the strong US dollar.
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