The equity benchmark indices experienced a significant decline in late morning trade on Thursday, particularly driven by a downturn in bank stocks following the Reserve Bank of India's monetary policy decision. Despite initial gains, the 30-share BSE Sensex plummeted by 746.62 points to 71,405.38, while the Nifty fell by 220.95 points to 21,709.55.
The decision by the Reserve Bank of India to maintain the key policy rate unchanged at 6.5 per cent for the sixth consecutive time underscored its cautious approach toward inflation. RBI Governor Shaktikanta Das announced the decision following the bi-monthly monetary policy review.
Several major firms on the Sensex experienced declines, including Axis Bank, Nestle, ICICI Bank, ITC, Maruti, Kotak Mahindra Bank, Bajaj Finance, and Asian Paints. However, PowerGrid stood out by defying the downward trend, surging nearly 5 per cent after reporting a 10.5 per cent rise in consolidated net profit in the December quarter.
State Bank of India, HCL Technologies, and Tata Consultancy Services were among the few gainers on the index.
In Asian markets, Seoul, Tokyo, and Shanghai saw positive trading, while Hong Kong recorded losses. Meanwhile, the US markets closed with gains on Wednesday.
The global oil benchmark Brent crude rose slightly to USD 79.43 per barrel.
Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs 1,691.02 crore on Wednesday, according to exchange data.
On the previous trading day, the BSE benchmark declined marginally by 34.09 points, settling at 72,152, while the Nifty ended slightly up by 1.10 points at 21,930.50.
(With Agency Inputs)
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