The changes to investment policy in aviation sector come less than a week after the Union Cabinet approved the National Civil Aviation Policy 2016, which had maintained a status quo on the FDI regime in the sector.
The 30-share index declined 178.03 points or 0.66 per cent to 26,447.88 with banking, consumer durables, FMCG, power, healthcare, metal and PSU sectot stocks leading the fall.
Wal-Mart will receive nearly 145 million new JD.com shares.
RBI governor Raghuram Rajan said that the RBI will "do what we can" to deal wit market volatility following Brexit.
FDI rules announced today will attract big new investments across key sectors such as food processing, defence production, pharmaceuticals and civil aviation, said CII.
The Indian Iris is the first of its kind platform that provides all policies and schemes of centre and state governments in an easy to understand language.
Budget carrier IndiGo ferried the highest number of 33.37 lakh passengers in May, followed by private full service carrier Jet Airways and Air India.
Major gainers were Tata Motors (3.80 per cent), Tata Steel (3.32 per cent), Ambuja Cement (2.59 per cent), Tata Mtrc (2.56 per cent) and Infy (2.48 per cent).
Raghuram Rajan, whose term is set to end in September, said India is abandoning the old ways by focusing on low inflation.
It said that to sustain 7.6 per cent growth in 2016-17, the challenge for the Indian economy is to activate the stalled engines - agricultural growth, rural demand, trade and private investment.
The Office noted that now been decided to permit 100% FDI under government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.
The 15-minute pre-open call auction is helpfull in containing excessive volatality, which was expected today.
It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.
As per the Government's release, most of the sectors now will have 100 per cent FDI except a few.
Marketmen said some big domestic institutions could have been pressed into buying to check the losses, as turnover was relatively higher in early morning trades for a Monday.
As per the present FDI policy, foreign investment up to 49% is allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service.
With the objective of providing major impetus to employment and job creation in India, the government on Monday made changes to the FDI policy at a meeting chaired by Prime Minister Narendra Modi.
"We don't want unnecessary speculation," a government spokesperson told PTI
Three opinion polls ahead of the June 23 vote showed the 'Remain' camp recovering some momentum, although the overall picture remains one of an evenly split electorate.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 per cent, Australian stocks added 1.4 per cent and South Korea's Kospi rose 1.5 per cent.