Reacting negatively to the Reserve Bank of India’s (RBI) mid-term review of annual Policy, the benchmark Sensex, on Tuesday, fell by 194 points to 19,783.51.

The RBI hiked the CRR by 0.5 per cent to 7.5 per cent while leaving key lending and borrowing rates as well as bank rates unchanged. The market witnessed high level of volatility and swung in a range of 543 points following the RBI’s decision. RBI’s concerns reflected in a statement by Finance Minister P Chidambaram that India faces a problem of huge capital inflow and needs appropriate regulations as well as risk management systems to avoid any potential shocks.

The Bombay Stock Exchange (BSE) barometer touched yet a new intra-day peak of 20,238.16 but ultimately ended at 0.97 per cent lower from Monday’s close of 19,977.67. The broader S&P CNX Nifty of the National Stock Exchange (NSE) hit  record high of 5,971.70 before ending down by 37.15 points at 5,868.75.