Market Benchmark Index Sensex dropped -260.31 points or -0.84% at 30,672.59 while the broader Nifty 50 dropped -67.00 points or -0.74% at 9,039.25 during the closing session on Friday after RBI Governor cut repo rate by 40 basis points.
Equity benchmark indices fell by 1 per cent during the afternoon on Friday as the Reserve Bank of India forecast contraction in H1 FY21 GDP growth, cut repo rate by 40 basis points and extended the loan repayment moratorium for another three months up to August 31.
The central bank also increased the group exposure limit of banks from 25 to 30 per cent of eligible capital base for enabling corporates to meet their funding requirements from banks. The increased limit will be applicable up to June 30 next year.
At 12:30 pm, the BSE S&P Sensex was down by 308 points or 1 per cent at 30,625 while the Nifty 50 edged lower by 86 points or 0.95 per cent at 9,020.
Earlier in the day, Sensex dropped 95.54 points or -0.31% at 30,837.36 during the opening session on Friday ahead of RBI's presser while the broader Nifty 50 dropped 48.80 points or -0.54% at 9,057.45.
Moreover, global markets also saw a fall in the previous trading session.
