The BSE Sensex extended fall to 0.59 per cent, while the broader Nifty was 0.6 lower. The RBI cut the repo rate by 25 basis points for the third time since January, as expected, as growth slows and inflation ebbs, but said there is little room to ease monetary policy further, disappointing markets.
HDFC Bank Ltd, India's No.3 lender by loan value, fell 1.13 percent, State Bank of India Ltd was lower by 3.15 percent, while ICICI Bank was down 2.9 percent.
Rate-sensitive auto stocks also saw selling with Tata Motors down 3.75 percent and Bajaj Auto Ltd lower by 2.84 percent.
IT stocks, however, rise on value buying after the recent sell-off. Infosys rose 1.24 percent after a steep fall of 22 percent in April on the back of poor March quarter results, while HCL Technologies gained 2.28 percent.
Copyright Thomson Reuters 2013
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