Interest rate sensitive realty and baking stocks bore the brunt of selling after the Reserve Bank of India left repo rate unchanged at 7.75 percent, but cut SLR by 0.50 percent to 21.50 percent.

Markets were expecting the central bank to continue the rate cut cycle after it surprisingly cut rate by 0.25 percent a fortnight ago. BSE Bankex plunged by by 2.61 percent, while realty slumped 1.43 percent.

The 30-share index was up 130 points higher in early trade ahead of RBI policy announcement but shed the gains to trade below 29,000 level.
    
It finally settled at at 29,000.14, showing a loss of 122.13 points or 0.42 percent from its previous close. The Sensex has lost 681.63 points or 2.30 percent in the three days.
     
The NSE Nifty also fell by 40.85 points or 0.46 percent to finish at 8,756.55. "Markets showed its disappointment on the outcome of monetary policy by trimming the day’s gains," said Hiren
Dhakan, Associate Fund Manager, Bonanza Portfolio.
    
Meanwhile, foreign portfolio investors sold shares worth a net Rs 629.97 crore on Monday, as per provisional data from stock exchanges.
    
Of 30 Sensex stocks,16 ended lower while 14 others finished higher. Axis Bank 4.95 percent was the biggest loser. Tata Power lost 4.12 percent, Bajaj Auto 3.74 percent, M&M 3.52 percent, HDFC 2.98 percent, Cipla 2.52 percent.
      
However, SSLT rose by 6.23 percent, Bharti Airel 3.42 percent, Reliance Ind 3.25 percent and ONGC 2.64 percent. Among the BSE sectoral indices, healthcare fell by 0.92 percent and auto 0.66 percent while FMCG rose by 1.06 percent, Metal 0.80  percent and Consumer Durable 0.50 percent.

The total market breadth turned negative as 1,531 stock ended in the red, 1,332 closed in the green and 118 ruled steady. Total turnover rose to Rs 4,737.88 crore from Rs 4,201.09 crore on Monday.

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