At the close of market hours, the Sensex was down 249.90 points or 0.69% at 35884.41, while the Nifty was lower by 80.20 points or 0.74% at 10789.30.
It’s a negative close for the market for second consecutive session as investors reacted to the stance on interest rates by the Reserve Bank of India. The Monetary Policy Committee (MPC) kept interest rates unchanged, but sharply cut the inflation targets for October-March.
However, equity benchmarks are off their low points as the Sensex had cracked over 300 points, while the Nifty tested 10,750-mark.
The Street had a cautious day of trade ahead of the meeting, while weak global cues also weighed on indices. Rate-sensitives such as banks, automobiles and real estate stocks were all in the red. After the policy announcement too, investors reacted negatively.
Lower crude prices based on global growth concerns failed to shore up the market too.
Selling was visible across all major sectors, with automobiles, banks, consumption, infrastructure, metals and pharma ending in the red. The Nifty Midcap was down over a percent.
At the close of market hours, the Sensex was down 249.90 points or 0.69% at 35884.41, while the Nifty was lower by 80.20 points or 0.74% at 10789.30. The market breadth was negative as 799 shares advanced, against a decline of 1,744 shares, while 145 shares were unchanged.
HUL and HDFC were the top gainers, while Sun Pharma, Tata Steel, and Hindalco lost the most.
Stocks in the News
Banks, auto and realty stocks, known as rate sensitive stocks, were under selling pressure after the Reserve Bank of India maintained status quo on policy rates and slashed its inflation forecast.
Share price of Kridhan Infra rose 3.5 percent as the company won an order worth Rs 105 crore.
Shares of Rattanlndia Infrastructure shed nearly 4 percent after company's promoter proposed to sell stake in the company.
Shares of Maruti Suzuki India slipped 2 percent as company's November production declined 12 percent.
Shares of Alembic Pharmaceuticals rose half a percent as company received USFDA approval for Candesartan Cilexetil Tablets.
Shares of Lupin declined 3 percent after United States Food and Drug Administration (USFDA) completed their inspection at Mandideep location with observations.
Kesoram Industries shares fell 13 percent after the company decided to spin off its tyre business.
Force Motors shares fell 1 percent after the dismal sales performance in November 2018.
Bharat Forge shares plunged 8 percent after Class 8 truck orders fell sharply in November.
Cadila Healthcare shares rallied 1.5 percent after global brokerage firm CLSA upgraded the stock to buy from outperform as risk-reward is favourable.
Arvind shares rallied 3 percent after global investment firm UBS maintained its buy call on the stock.
Tasty Dairy Specialities shares gained 3 percent after the company signed Memorandum of Understanding (MoU) with Foundation Dutch Greenhouse Delta, a Netherlands-based organisation.
Equity markets in Asia declined on Wednesday, following a plunge on Wall Street as investors continued to be worried about an economic slowdown in the US.
The Shanghai composite declined 0.61 percent to close at about 2,649.81 and the Shenzhen composite fell 0.484 percent to finish at around 1,380.78.Meanwhile, European stocks were lower too as global growth fears too weighed on stocks there. Stoxx 600 slipped 1.2 percent during early morning trade.