Equity benchmark indices Sensex and Nifty closed nearly 1 per cent down on Thursday after the Reserve Bank of India decided to keep the policy rate unchanged for the ninth time in a row and termed food inflation "stubborn".
The 30-share BSE Sensex declined by 581.79 points or 0.73 percent to settle at 78,886.22 in a volatile trade.
During the day, it tumbled 669.07 points or 0.84 percent to 78,798.94.
The NSE Nifty declined by 180.50 points or 0.74 percent to close at 24,117.
Among 30 Sensex firms, Asian Paints, Infosys, JSW Steel, UltraTech Cement, Power Grid, Larsen & Toubro, HCL Technologies and Tata Steel were the biggest laggards.