Mumbai: The BSE Sensex and the Nifty fell 2 percent on Friday, marking their biggest single day percentage fall since March 2012 as lenders such as ICICI Bank reeled after economic growth data came in line with expectations, dashing hopes the RBI would cut interest rates next month.

ICICI Bank Ltd provisionally fell 2.9 percent, while HDFC Bank Ltd ended 3.5 percent lower. Reserve Bank of India Governor Duvvuri Subbarao's comments on Thursday that retail inflation is still high, and several upside risks to inflation remain were also seen adding to an already cautious mood.

The BSE Sensex provisionally fell 2.24 percent, while the Nifty ended down 2.26 percent, marking their lowest close in a week.


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