Good question Siva..
First let me tell you that RBI rate hikes are not at all expected, even if they are expected also but not by this amount. According to CNBC survey majority of the corporates expected only 25 basis points hike in repo rate. But Mr. Reddy's move was a shock. He increased repo rate by 50 basis points & CRR also by 25 basis points, this one move itself sucks out the 200 billion rupees from the banks. And after all Stock Market runs on sentiments not by logic all the time. Just one news is sufficient for crash. So yesterday's news was bad for the market, thats why Bank index and reality sector hit very seriously.. And also there is reduction in growth expectation from 8.5 to 8%. So one more bad news for market to sell off.

And about GDP & GNP I will try post in next post............

Keep reading & asking questions......