After trading high in the morning, the markets closed in red on Friday, 6 December.
The S&P BSE Sensex fell 341 points at 40,432, while NSE Nifty 50 slipped 100 points to close at 11,917 as of 3:20 pm on Friday.
Shares of Yes Bank extended declines to trade at day's low. The stock fell as much as 9.4 percent to 56.25, according to BloombergQuint.
The markets ended on a low for the second day, as on Thursday too, the Indian equity benchmarks erased early gains and ended lower after the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.15 percent.
Earlier on Friday, the indices opened in the green on Friday, 6 December morning with both Sensex and Nifty gaining more than 0.25 percent.
The 30-share BSE index opened at 40,952.13, up 180 points. However it shed half of the gains subsequently and was up 110 points at 9:45 am.
Among sectors, all sub-indices with the exception of Nifty IT and Nifty PSU Bank were trading in the green.
Nifty Pharma was gaining the most at more than a percent.
Meanwhile, the rupee was trading flat in opening trade on Friday.
On Thursday, The RBI unexpectedly kept benchmark interest rate unchanged at 5.15 per cent and reverse repo rate at 4.90 per cent on concerns of headline inflation breaching its medium-term target.
However, the RBI promised to continue with its accommodative stance in its monetary policy.
Asian stocks were trading higher on Friday as investors hoped US-China trade talks would move in direction after positive signals from American President Donald Trump.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)