The BSE Sensex was trading in the negative terrain and was down over 300 points despite a repo rate cut announcement by the the Reserve Bank of India in its policy meeting.
AT 11.49 am, Sensex was down 396.63 points at 27,452.36. Similarly, Nifty was down 116.05 points at 8,317.35.
Traders said this was a reaction to Raghuram Rajan-led RBI’s cautious stance on further easing.
Reserve Bank of India (RBI) governor Raghuram Rajan cut the repo rate by 25 basis points to 7.25 per cent from 7.5 per cent in the central bank’s monetary policy review.
The benchmark BSE Sensex on Monday closed 20.55 points up at 27,848.99. The 50-share NSE Nifty after rising to the day’s high of 8,467.15 slipped into the negative terrain and hit a low of 8,405.40 before settling 0.25 point, down at 8,433.40.
Among other Asian markets, Japan’s Nikkei was trading higher by 0.17 per cent while Hong Kong’s Hang Seng index shed 0.45 per cent in early trade on Tuesday.
The US Dow Jones Industrial Average ended 0.16 per cent higher in Monday’s trade.