Markets slump on fear of rate hike

MUMBAI: The equity markets extended their fall for the second straight day dragged down by strong selling in financial sector stocks as RBI started its three-day monetary policy meeting.

While one section of the market participants are expecting the RBI to hold rates, others are seeing a probability of a 25 basis points hike in repo rates. 

The Nifty slumped 67.70 points or 0.63 per cent to end the day at 10,628.50 while Sensex dropped 215.37 points or 0.61 per cent to close the session at 35,011.89.