Sensex wipes-off initial gains at noon on RBI rate hike

The Sensex, which had risen to 18,944.60 at the outset, fell sharply by 301.11 points to 18,570.18 at 1130 hrs as all the sectoral indices traded in negative zone.

On the similar lines, the broad-based National Stock Exchange index Nifty fell by 96.90 points to 5,583.40 after rising to 5,702.25.

Brokers said investors lost confidence as the Reserve Bank of India`s decision to hike interest rates by 50 basis points in its policy meeting on Tuesday, was more than the market expected.