MUMBAI: The 30-stock benchmark Sensex ended the day on 2 June down 660.61 points at 27,188.38 points. Twenty-nine of 30 stocks ended the day in red. The 50-share Nifty closed the session at 8,236.45; down 196.95 points.

Airtel was the lone gainer, while Axis Bank, SBI, ITC, Hindalco, and ICICI Bank were the top losers, with each of them plummeting by over 4% each.

The Reserve Bank of India, which slashed its policy interest rate by a quarter percentage point in its third policy this year, said its stance was to “front-load a rate cut today” and wait for data to clarify uncertainty.

Post-repo rate cut, the sell-off in markets came after interpretation of the RBI’s commentary that the chance of another rate cut in the current calendar year remains bleak due to a shrinkage of real interest rate to 1.5 percent.

The central bank warned that it would track inflationary trends, citing risks posed to food prices if monsoon rains are weaker than expected,  a recovery in the global crude prices, or weakening of the Rupee due to volatility in global markets.

The sentiment was advanced due to the lack of steps taken to free up cash-strapped commercial banks’ liquidity, which bankers said were needed to further lower lending rates and pass on the benefits of monetary easing to the broader economy.