Indian share prices fell 0.85 percent on Wednesday after a hike in interest rates by the central bank, dealers said. They said banking stocks fell as the central bank in a quarterly policy review raised its overnight borrowing or repurchase rate by a quarter percentage point to 7.5 percent, making it costlier for banks to borrow funds.
The 30-share Mumbai stock exchange Sensex index fell 121.04 points to 14,090.92 after hitting a record 14,282.46 last Thursday. "The markets are likely to see choppy and rangebound trade until the union budget is announced next month," said R. Balakrishnan, a director with Parallex Consultancy Services. Tata Steel fell 55.35 rupees or 10.66 percent to 463.95 after its take-over of British steel firm Corus for 13.7 billion dollars was deemed too steep.
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