Sensex down over 400 points as RBI hikes repo rate

Raghuram Rajan, India's new RBI governor marked his first policy meeting on Friday with a bold decision to hike interest rate from 7.25 to 7.50%. This resulted in a fall of the stock market by 2.16% afterwards to 20,199.79 points and a fall in rupee to 62.39 against the dollar from previous closes of 61.77.