Market falls sharply as RBI maintains status quo for sixth consecutive time

AFTER a positive start, domestic equity market declined sharply on Thursday following the Reserve Bank of India's (RBI) decision to maintain the key interest rates unchanged for the sixth straight time. Foreign institutional investors (FII) selling intensified on the weekly expiry day.

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RBI Governor Shaktikanta Das-led six-member Monetary Policy Committee (MPC) maintained repo rate at 6.5%. The panel's "withdrawal of accommodation" stance and focus on bringing down inflation rate to about 4% level made investors less optimistic about a rate cut in the near future.