The BSE Sensex on Friday further lost by 334.44 points to settle at 40,445.15 following heavy selling in Bankex, IT, Materials, Telecom, Metal, Power, Auto and Utilities stocks.
The sentiment was subdued after the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday.
In a surprise move, the RBI decided to hold the rates after delivering five consecutive rate cuts in 2019. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.
RBI revised GDP growth downwards to 5 per cent for 2019-20 from 6.1 per cent projected in its October policy. The CPI inflation projection has also been revised upwards to 4.7-5.1 per cent for the second half of FY20 and 3.8-4 per cent for the first half of FY21.
The Nifty slipped by 96.90 pts to 11,921.50. It registered day high and low at 12,057.05 and 11,888.85 pts respectively.
The Sensex opened strong at 40,952.13 pts, advancing by 173 pts and it remained days high only. Later, it nosedived nearly 442 points to 40,337.53, day low, before closing at 40,445.15, sliding by 334.44 points from its last close.
The sectoral indices include, Bankex, IT, Materials, Telecom, Metal, Power, Auto and Utilities dragged the market further, the broker said.
In scrips, Yes Bank, SBI, IndusInd Bank, Tata Motors and M & M tumbled down.
In the broader market, the S&P BSE Mid-Cap index slipped 1.26 per cent while the S&P BSE Small-Cap index fell 0.86 per cent.
The market breadth was weak. On the BSE, 879 shares rose and 1647 shares fell. A total of 183 shares were unchanged. In Nifty 50 index, 9 stocks advanced while 41 stocks declined.
Shares in Europe and Asia edged higher as investors await employment data out of the US and monitor trade developments between Beijing and Washington.