Equity benchmarks lurched lower for the fourth session on the trot on Wednesday after the RBI hiked the policy rate on expected lines but sharply raised the inflation forecast for the current fiscal amid geopolitical tensions and supply chain issues.

The rupee also slumped to a life-time low of 77.79 on Wednesday before recovering to settle at 77.68 against the dollar.

The 10-year bond yields also rose to a high of 7.56 per cent before recovering.

The 30-share BSE Sensex tumbled 214.85 points or 0.39 per cent to close at 54892.49 in see-saw trade.

The broader NSE Nifty declined 60.10 points or 0.37 per cent to finish at 16356.25.

Bharti Airtel was the top laggard in the Sensex pack, slumping 3.31 per cent, followed by ITC, Reliance Industries, Asian Paints, Axis Bank, IndusInd Bank, ICICI Bank and Kotak Mahindra Bank.

“With RBI policy now behind, markets will take cues for global events. Investors will keep eye on ECB policy meet, macro data points like US inflation, China inflation and UK GDP data due later this week,’’ Siddhartha Khemka of Motilal Oswal Financial Services said.

At the interbank forex market, the rupee opened strong at 77.70 and witnessed an intra-day high of 77.64 and a low of 77.79. It finally settled at 77.68, up 10 paise .

Yields on the benchmark 10-year security hit a high of 7.56 per cent in intra-day trades compared with the previous close of 7.52 per cent.

However, RBI governor Shakikanta Das’s address led to a rally in G-sec prices — which are inversely related to yields . The paper then fell to a day’s low of 7.44 per cent and thereafter settled at 7.49 per cent.

At the stock markets, equities were also in the positive territory after opening in the green at 55,345.51 as the repo rate hike did not lead to any negative surprises. However, they came under pressure due to rising crude oil prices and continuous FPI selling.

by foreign portfolio investors.

After rising to a day’s high of 55,423.97 in intra-day trades-a gain of almost 317 points, the 30-share Sensex tumbled 214.85 points or 0.39 per cent to close at 54,892.49. The broader NSE Nifty declined 60.10 points or 0.37 per cent to finish at 16,356.25.

Bharti Airtel was the top laggard in the Sensex, falling 3.31 per cent. It was followed by ITC, Reliance Industries, and Asian Paints.