Benchmarks suffer biggest one-day fall in 2019 as RBI rate cut fails to calm NBFC jitters

Benchmark indices posted their biggest one-day drop this year Thursday after the RBI delivered a rate cut on expected lines but failed to assuage investor concerns regarding the NBFC sector.

The 30-share BSE Sensex cracked 553.82 points, or 1.38 per cent, to settle at 39,529.72, pressured by losses in banking, energy and capital goods stocks. The broader NSE Nifty plunged 177.90 points, or 1.48 per cent, to end at 11,843.75.

The previous biggest drop this year was on April 22, when the Sensex had dived 495.10 points while Nifty had lost 158.35 points.

Slashing benchmark lending rate for the third time this year, the central bank cut the repo rate by 0.25 per cent to 5.75 per cent -- the lowest in nine years -- and changed its monetary policy stance from 'neutral' to 'accommodative'.

However, the RBI lowered the economic growth forecast for the current fiscal to 7 per cent due to slowdown in domestic activities and escalation in global trade war.

RBI Governor Shaktikanta Das also said .