The top losers from PSU Bank index included Union Bank of India, State Bank of India, PNB, Bank of Baroda, Canara Bank, Central Bank of India, Indian Bank and Bank of India.
Indian stock market is trading in the red with Sensex down 132.78 points or 0.33 percent at 40646.81, and the Nifty shed 39.60 points at 11978.80.
Nifty PSU Bank is the underperforming sector, down over 3 percent after the Reserve Bank of India decided to hold interest rates. Investors booked profit on fears of weak economic growth.
The MPC significantly increased its CPI inflation forecast for H2 FY20 to 5.1-4.7 percent from the earlier 3.5-3.7 percent, with risks broadly balanced.
Following the continued drop in GDP (gross domestic product) in Q2 FY20, the MPC has considerably reduced its projection for economic growth for the year to March to 5 percent, from the previous 6.1 percent with risks evenly balanced in October 2019.
The top losers from the sector included Union Bank of India, State Bank of India, PNB, Bank of Baroda, Canara Bank, Central Bank of India, Indian Bank and Bank of India.
The auto index shed a percent dragged by Mahindra & Mahindra, Tata Motors, TVS Motor, Maruti Suzuki and Eicher Motors.
Vodafone Idea share price tanked 9 percent for the second consecutive trading session after Chairman Kumar Mangalam Birla said, “Vodafone Idea will shut down if the government does not provide any relief,” according to PTI.
Share price of Dish TV tanked over 15 percent resulting in the stock hitting lower circuit of Rs 11.78 per share. The stock also witnessed spurt in volume by more than 1.19 times.
YES Bank was the top loser from the Sensex down 8 percent after Global ratings agency Moody's on December 5 downgraded the ratings on private sector lender Yes Bank with a negative outlook citing asset quality concerns and the shrinking capital buffers.
The agency said the bank's claim to have received investor interest to the tune of USD 2 billion has "significant execution risks around the timing, price and regulatory approvals".
The S&P BSE Telecom index managed to stay in the green led by Bharti Infratel which spiked over 4 percent followed by Reliance Communications and Sterlite Technologies.
The top gainers from the Nifty index are Bharti Infratel, Dr Reddy's Labs, Kotak Mahindra Bank, Asian Paints and HDFC Bank while the top losers include YES Bank, Zee Entertainment, State Bank of India, Mahindra & Mahindra and GAIL India.
The most active stocks are ICICI Bank, YES Bank, State Bank of India, Indiabulls Housing Finance and Zee Entertainment.
ICICI Securities, City Union Bank and Max Financial Services have hit new 52-week high while Cummins India, GAIL India and Finolex Cables hit 52-week low.
About 756 shares have advanced, 1353 shares declined, and 116 shares are unchanged.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.