Mumbai: The BSE benchmark Sensex on Tuesday dipped below 20,000 level by losing 112 points on profit selling by investors triggered by lower economic growth projections by RBI even as it cut lending rates by 0.25 percent.
The Sensex ended lower by 112.45 points, or 0.56 percent, to 19,990.90.
The gauge touched the day's high of 20,203.66 following interest rate cut announcement, but touched a low of 19,970.05 as the RBI projected a lower economic growth for the current fiscal.
The broad-based National Stock Exchange index Nifty lost 24.90 points, or 0.41 percent, to 6,049.90, after touching the day's high of 6,111.80.
The Reserve Bank trimmed the economic growth projection for the current fiscal to 5.5 percent, from 5.8 percent estimated earlier and said it was necessary to arrest the decline in growth as inflation risks moderate.
The market failed to cheer the RBI's decision to reducing key interest rates by 0.25 percent and releasing Rs 18,000 crore additional liquidity into the financial system.
Besides banking stocks, the two index heavyweight with their nearly 17 percent weightage Reliance Industries and Infosys fell by 1.68 percent to Rs 882.55 and 0.54 percent to Rs 2,795, respectively.
Among the lenders, State Bank of India fell by 1.32 percent to Rs 2,357.30, HDFC Bank by 2.54 percent to Rs 653, Bank of India 4.01 percent to Rs 341, Bank of Baroda by 2.64 percent to Rs 847.15, Canara Bank by 2.23 percent to Rs 471.80, Yes Bank by 1.92 percent to Rs 512.25 and Punjab National Bank by 1.45 percent to Rs 859.30.
The interest-sensitive realty sector index suffered the most by losing 2.07 percent to 2,177.77 followed by oil and gas index by 1.35 percent to 9,299.47. Auto index lost 1.12 percent to 11,059.84, while Bank index fell by 0.51 percent to 14,589.39.


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