The BSE benchmark Sensex tumbled 345 points on Friday to touch 25-month low when it closed at 15,491.35.
The rate pause by the Reserve Bank of India (RBI) at its policy review failed to enthuse the overall market sentiment.
Interest rate sensitive banking stocks declined after Reserve Bank of India (RBI) kept cash reserve ratio (CRR) and short-term lending rate steady in its mid-quarter monetary policy review today.
The RBI on Friday left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling. The central bank also refrained from cutting the cash reserve ratio (CRR) despite tight liquidity in the system.
The BSE benchmark Sensex resumed higher at 15,868.78 and shot up further to 16,068.90 on fresh buying from operators on the back of firm Asian cues. However, it declined afterwards to 25-month closing low to 15,491.35, showing a loss of 345.12 points of 2.18 per cent due to profit-booking.
Previously, it had ended at 15,404.04 on Nov 3, 2009.
Foreign institutional investors (FIIs) sold shares worth Rs 323.28 crore on Thursday as per the provisional data from the stock exchanges. FII outflow totaled Rs 1701.09 crore in five trading sessions from 9 to 15 Dec 2011, as per provisional data from the stock exchanges.
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