Indian markets fell sharply today, driven by sharp losses in banking and auto stocks. The Sensex ended 334 points lower at 40,445 while Nifty settled at 11,914, down about 0.9%. Among the Sensex stocks, Yes Bank shares slumped 11% while SBI shares dropped 5.5%.

Among other top losers, ITC, Axis Bank, ONGC, Maruti Suzuki, Sun Pharma, HDFC, M&M, Tata Motors and IndusInd Bank fell between 1.5% and 3.5%.

The broader markets also suffered sharp losses. The BSE midcap and smallcap indices 1.3% and 0.9% respectively.

Ajit Mishra of Religare Broking said the recent decline shows disappointment among the participants post the RBI policy outcome as the majority were hoping for a rate cut.

"The Nifty has breached its immediate support at 11,900 and we may see further profit taking ahead. However, we feel it’s a healthy correction and 11,700-11,800 zone would continue to act as a cushion," he added.

Vinod Nair, head of research at Geojit Financial Services, said some profit-taking was seen amid concerns over economic growth outlook and premium valuation.

The Reserve Bank of India on Thursday kept surprisingly kept interest rates steady as against market expectations of a 25 bps cut.

Global markets are mostly higher today after US President Donald Trump said that trade talks with China were "moving right along". Uncertainties over a deal have pushed some investors to the sidelines in recent sessions. (With Agency Inputs)

My Reads Logout