The Indian equity market witnessed a shock on Thursday afternoon as the Reserve Bank of India (RBI) kept the repo rate unchanged, and both the BSE Sensex and the Nifty50 on the National Stock Exchange slumped to the negative territory as soon as the announcement came.
At 12.13 p.m., the Sensex was trading at 40,815.15, lower by 35.14 points or 0.09 per cent from the previous close of 40,850.29.
It had opened at 40,988.14 and has so far touched an intra-day of 41,002.41 and a low of 40,730.58.
The NSE Nifty50 was trading at 12,031.95, lower by 11.25 points or 0.09 per cent from its previous close.
In a surprise move, the RBI left the repo rate unchanged at 5.15 per cent, against the market expectation of a rate cut. Further, the central bank also revised the FY 2019-20 growth rate downwards to 5 per cent from the previous estimate of 6.1 per cent.
Markets anticipated the RBI to go ahead with the sixth consecutive rate cut due to a slowing economy.