Benchmark Sensex retreated from its record high to end 47 points lower at 29,927.34 on Thursday after the Reserve Bank left the key policy rate unchanged. On similar lines, the National Stock Exchange index Nifty continued its record-setting spree by gaining another 27.10 points, or 0.29%, to trade at new high of 9,264.95.
On Monday the Sensex closed at 29,910.22 points while it was a trading holiday on Tuesday.
Thed RBI, in its Monetary Policy Review, kept the repurchase (repo) rate, or the short-term lending rate it charges on borrowings by commercial banks, unchanged for the third consecutive time at 6.25 per cent. RBI however increased the reverse repo rate - which it pays to banks for parking funds with it - by 0.25% to 6%, narrowing the policy rate corridor. Among rate sensitive scrips, ICICI Bank fell 0.93 per cent to Rs 282.20, while state-run SBI was down 0.29 per cent at Rs 295.85.
The central bank also projected the GDP growth for the current fiscal at 7.4 per cent, up from 6.7 percent in 2016-17.More news: Louis voters choose tax increases, but scuttle soccer stadium funding
China's Shanghai Composite index was, however, quoting in green, up by 0.16 per cent. HDFC rose 0.47%. Broader markets were mixed, with small-cap index falling 0.23% while mid-cap rising 0.15%.
Sector-wise, the S&P BSE consumer durables index plunged by 100.78 points, followed by the healthcare index, which dipped by 98.18 points, and the FMCG index, which fell by 73.47 points. Hawkish Fed minutes and anxiety ahead of a two-day meeting between US and Chinese leaders also weighed on markets.
In contrast, the BSE market breadth was bullish - with 1,472 advances and 1,419 declines. Further, the central bank is preparing to take next steps on banks' stressed assets, and will issue a corrective steps framework by mid-April, he said.
In the Asian region, Japan's Nikkei ended 1.40 per cent lower, while Hong Kong's Hang Seng shed 0.52 per cent. The BSE banking index, however, was trading little changed at 24,711.29 points on Thursday.