Nifty sinks to an 18-month low as rate fears bite

The Nifty 50 plunged 1.64 percent to 22,231.80, an 18-month closing low, while the Sensex fell 1.44 percent to 71,593.24, a day after the RBI hiked the repo rate by 25 bps to 5.50 percent and shifted stance to calibrated tightening. FPIs net sold shares worth 12,943 crore, the highest single-day selling since May 29, with GQG Partners and Goldman Sachs offloading ITC shares worth over 8,670 crore in block deals and ITC falling 4.03 percent. Brent crude surged 4.8 percent to 104 dollars a barrel on West Asia tensions, stoking inflation fears and prompting global investors to exit emerging market equities.