Benchmark indices fell on Tuesday with the Nifty losing almost 1% after the 10-hour long RBI board meeting took a decision to ease capital norms.
The BSE Sensex ended lower by 300.37 points or 0.84% at 35,474.51, while the Nifty was down by 107.20 points at 10,656.20.
All sectoral indices traded in the red with IT, Metal and Pharma indices falling the most, down 2-3 percent.
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Moody’s Investors Service said that the Reserve Bank of India’s decision to allow lenders more time to adhere to additional capital buffer norms under Basel 3 is credit negative for the country’s state-run banks, which further dampened the investor mood.
Technology stocks also corrected after further recovery in rupee against the US dollar. The Nifty IT index declined over 2% as Wipro, Tech Mahindra, HCL Technologies, NIIT Technologies, Mindtree, Infosys and TCS slipped 1-3.5 percent.
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