Reserve Bank maintaining status quo on monetary policy failed to cheer investors as the benchmark BSE Sensex plunged by 285.83 points to 24,539 on Tuesday, while global cues were also bearish on fresh slide in crude oil prices.
RBI, which had cut interest rate by 125 basis points or 1.25% in 2015, retained the benchmark repo rate at 6.75%.
The central bank governor Raghuram Rajan also pegged the growth rate for the current fiscal at 7.4%.
Meanwhile, rupee weakening by 14 paise to 67.98 during the day against dollar also weighed on the domestic equities.
Asian and European shares took a plunge as renewed concerns over health of the global economy led to a sharp drop in oil prices.
The BSE Sensex took off on a positive note at 24,868.21 and advanced to the day’s high of 24,928.75 after RBI left the key interest rate unchanged in its 6th bimonthly policy review.
Higher levels could not be sustained as participants locked in gains amid a weak opening in Europe. The index finally settled 285.83 points or 1.15% down at 24,539, after hitting a low of 24,460.53.
The NSE Nifty broke below the 7,500-mark by tumbling 100.40 points or 1.33% to 7,455.55. Intra-day, it shuttled between 7,576.30 and 7,428.05.
Out of the 30-share Sensex pack, 25 ended lower.
Prominent losers were Tata Steel, NTPC, BHEL, Cipla, Sun Pharma, ONGC, Coal India, RIL, ICICI Bank, Adani Ports, Tata Motors, Axis Bank, SBI, M&M, Maruti Suzuki and GAIL India.
Bucking the trend, shares of Bajaj Auto gained 1.48% to Rs 2,362.55 after the company reported 1.78% growth in total sales in January. Bharti Airtel and Infosys also ended in positive terrain.
Sector-wise, the BSE metal index suffered the most by plunging 4.33% followed by oil&gas (2.59%), infra (2.50%), healthcare (2.46%), PSU (2.45%), power (2.42%), realty (1.71%), banking (1.68%) and auto (1.39%).
In the broader markets, the BSE mid-cap index fell by 1.74% and the small-cap shed 1.25%.
Other Asian markets closed mixed after oil resumed its sell-off amid signs that China’s economy is deteriorating.
China’s Shanghai Index jumped 2.26% after its apex bank pumped in fresh liquidity, but Japan’s Nikkei fell 0.64% and Hong Kong’s Hang Seng shed 0.76%. Europe was also lower in its early trade.