The markets ended the day on a negative note on Friday on the back of soured sentiments following the surprise repo rate increase by 25 bps announced in RBI's monetary policy today.

The Nifty closed at 6012, down 1.69 per cent or 103 points and the Sensex closed at 20,264, down 383 points or 1.85 per cent. Except consumer durables, power and healthcare, all sectoral indices closed in the red on the Sensex led by realty, banks and capital goods which closed lower by 6.5 per cent, 4.1 per cent and 3 per cent respectively.

Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities said: “Bank and realty stocks are reeling under selling pressure as investors grew concerned over RBI's mid-quarter credit policy review. Going forward, the focus would be on upcoming earnings season as well as developments related to the fiscal cliff talks in the US.”

GS Sundararajan, Managing Director, Shriram City Union Finance said: "The RBI's policy package could help in stabilising financial markets in the near term. It could thus build on the breathing space provided for many emerging market economies by the US Fed's decision to postpone its QE tapering. At the same time, the RBI is also preparing for the inevitable end of QE down the road. One can therefore expect that when the inevitable taper and capital outflows from emerging markets take place, domestic financial markets may not be as volatile as they have been in the past few months."

Volatility was up with the India VIX index closing at 24.73, up 0.94 per cent.

Reliance Infra, Ultratech Cements, GAIL, HCL and Ambuja Cements were the top five Nifty gainers while DLF, PNB, Bank of Baroda, Indusind Bank and JP Associates were the top losers.

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