Indian markets gave up all its morning gains and ended near day's level on the back of selling seen in the banking, auto, metal and infra stocks after Reserve Bank of India (RBI) cut its repo rate by 25 basis points in its bi-monthly review meeting.
The Sensex was down 433.56 points or 1.14†percent at 37673.31, while Nifty was down 139.20 points or 1.23†percent at 11174.80.
The Reserve Bank of India (RBI) has cut its repo rate by 25 basis points to 5.15 percent in a bid to boost the flow of credit and support economic growth.
The central bank also decided to continue with an accommodative stance ďas long as it is necessaryĒ to revive growth, while ensuring inflation remains within the target.
The rate sensitive stocks came under pressure post the outcome of the RBI meeting.
Among banking names, Federal Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank and RBL Bank are trading 1-3 percent lower.
Real estate stocks are also trading under pressure led by the HDIL, Prestige Estate, Sobha, Sunteck Realty and Unitech.
Motherson Sumi, Tata Motors, TVS Motor, Exide Industries, Bosch, Bharat Forge and Amara Raja Batteries are some of the losers among auto stocks.
Yes Bank, Kotak Mahindra Bank, BPCL, SBI and Indiabulls Housing are the most active shares on the BSE.
Infosys, Birlasoft, Oracle Financial, Tech Mahindra, Wipro and TCS are among major gainers in the IT space.