BSE Sensex extends fall; lenders, auto stocks hit

Reuters Market Eye - The Sensex extends fall to 0.59 percent, while the broader Nifty was 0.6 lower.The RBI cut the repo rate by 25 basis points for the third time since January, as expected, as growth slows and inflation ebbs, but said there is little room to ease monetary policy further, disappointing markets.

HDFC Bank Ltd , India's No.3 lender by loan value, falls 1.13 percent, State Bank of India falls 3.15 percent, while ICICI Bank is down 2.9 percent.

Rate-sensitive auto stocks also see selling with Tata Motors Ltd down 3.75 percent and Bajaj Auto Ltd trading 2.84 percent lower.

 

IT stocks, however, rise on value buying after the recent selloff. Infosys Ltd rises 1.24 percent after a steep fall of 22 percent in April on the back of poor March quarter results, while HCL Technologies gains 2.28 percent.

(Reporting by Archana Narayanan)