The Indian equity benchmarks erased intraday gains and receded from record highs in late morning deals dragged by weakness in Reliance Industries after the Supreme Court ruled in favour of Amazon in sale of Future Retail to Reliance Industries case. The Sensex fell over 348 points from record high and Nifty slipped below 16,300 after hitting an all-time high of 16,336.75. Meanwhile, the Reserve Bank of India's monetary policy committee kept interest rates steady at record lows on Friday as expected.
As of 10:51 am, the Sensex was down 205 points at 54,288 and Nifty 50 index dropped 43 points to 16,251.
The Reserve Bank kept the repo rate unchanged at 4 per cent and decided to maintain an "accommodative" stance as the economy is yet to recover from impact of second Covid wave. The RBI Governor made the announcement at the end of the bi-monthly Monetary Policy Committee (MPC) review meeting that started on Wednesday. The reverse repo rate has also been left untouched at 3.35 per cent.
Meanwhile, Reliance Industries was the top drag on the benchmarks after the Supreme Court held emergency arbitrator award enforceable in Future Retail case. Emergency arbitrator at Singapore had directed for a stay on the sale of Future Retail to Reliance.
Six of 11 sector gauges were trading lower led by the Nifty Pharma index's 0.3 per cent decline. Nifty Metal, FMCG, Bank and Financial Services indexes were also trading on a weak note.
On the other hand, IT, media and private bank indices were trading on a positive note.
Mid- and small-cap shares were witnessing buying interest as Nifty Midcap 100 index rose 0.4 per cent and Nifty Smallcap 100 index advanced 0.2 per cent.
Grasim, Titan, Tata Steel, Larsen & Toubro, ICICI Bank, State Bank of India, HDFC, UltraTech Cement, JSW Steel, Dr Reddy's Labs, HCL Technologies, Britannia Industries, Axis Bank and HDFC Bank were among the top losers in the Nifty.
On the flipside, IndusInd Bank, Maruti Suzuki, Tata Consumer Products, Indian Oil, Bharat Petroleum, Tech Mahindra and Bharti Airtel were among the gainers.