The equity markets experienced a sharp decline in late morning trade on Thursday, driven by bank stocks, following the Reserve Bank of India's monetary policy decision. The 30-share BSE Sensex plummeted by 746.62 points to 71,405.38, while the Nifty dropped 220.95 points to 21,709.55.
The RBI announced its decision to maintain the key policy rate unchanged for the sixth consecutive time, with the repo rate remaining at 6.5 per cent. This decision was part of the bi-monthly monetary policy review led by RBI Governor Shaktikanta Das.
In the Sensex, Axis Bank, Nestle, ICICI Bank, ITC, Maruti, Kotak Mahindra Bank, Bajaj Finance, and Asian Paints were among the major laggards. However, PowerGrid defied the market trend, surging nearly 5 per cent after reporting a 10.5 per cent increase in consolidated net profit for the December quarter.
State Bank of India, HCL Technologies, and Tata Consultancy Services were notable gainers amidst the overall market downturn.
In Asian markets, Seoul, Tokyo, and Shanghai traded positively, while Hong Kong witnessed a decline. The US markets closed with gains on Wednesday.
Global oil benchmark Brent crude rose by 0.28 per cent to USD 79.43 per barrel.
Foreign institutional investors (FIIs) sold equities worth Rs 1,691.02 crore on Wednesday, according to exchange data.
On Wednesday, the BSE benchmark had declined by 34.09 points, or 0.05 per cent to settle at 72,152, while the Nifty ended marginally up by 1.10 points or 0.01 per cent at 21,930.50.
(With PTI inputs)
