Sensex falls 434 points, Nifty slips below 11,200 as RBI cuts GDP forecast

Market players said that given the large revision in growth outlook, the 25-bp reduction seems inadequate

The benchmark indices fell on Friday, despite a 25-basis-point (bp) rate cut by the Reserve Bank of India (RBI), as market sentiment was dented after the central bank lowered its economic growth forecast. 

The RBI reduced its gross domestic product (GDP) estimates for the current financial year from 6.9 per cent to 6.1 per cent. The Sensex ended Friday’s session 434 points, or 1.14 per cent, lower. The Nifty dropped  139 points, or 1.23 per cent, to close at  11,175. Both indices have declined about 3 per cent this week, the biggest weekly fall since May 10,   amid turmoil in the