JOIN USBenchmark indices fell more than 2 per cent due to inflation concerns after the government indicated that monsoon is likely to be below normal this year. While the BSE Sensex tumbled 660.61 points (2.37 per cent) to 27,188.38, the Nifty closed 196.95 points (2.34 per cent) lower at 8,236.45.
The Indian Meteorological Department (IMD) lowered rain forecast to 88 per cent of long-term average from 92 per cent earlier due to delay in its onset.
The monetary policy also failed to provide a booster shot to the markets as RBI governor moved along expected lines to announce a 25 basis point cut in repo rate.
Banking stocks were among the major losers on the Nifty. Axis Bank led the pack of losers with a loss of 4.44 per cent, closing at 552.75.
Three Nifty stocks managed to reverse the downtrend in the markets and end in the green.