Mumbai (Maharashtra) [India], October 3 (ANI): The Indian stock market's benchmark Sensex slumped 638 points on Monday dragged by last-hour heavy selling in auto, FMCG and banking stocks.

The 30-stock SP BSE Sensex slumped 638.11 points or 1.11 per cent to 56,788.81 points against its previous session's close at 57,426.92 points.

Earlier, the Sensex started the day marginally down at 57,403.92 points but witnessed heavy selling pressure in the late morning trade. The Sensex slumped to a low of 56,875.05 points in the morning session. The Sensex briefly turned positive in the morning session rising to a high of 57,454.84 points.

The markets witnessed heavy selling towards the end of the trading session dragging the Sensex down to 56,683.40 points in the intra-day.

The Sensex had gained 1016.96 points or 1.80 per cent on Friday, the previous trading session.

The markets had witnessed a strong rally on Friday after the monetary policy announcement by the RBI. On the expected lines, the RBI's Monetary Policy Committee decided to raise policy repo rate by 50 basis points or 0.50 per cent to 5.90 per cent.

The Monetary Policy Committee (MPC) met on 28th, 29th and 30th of September 2022. Based on an assessment of the macroeconomic situation and its outlook, the MPC decided by a majority of five members out of six to increase the policy repo rate by 50 basis points to 5.9 per cent, with immediate effect, RBI Governor Shaktikanta Das said while making announcement about the MPC decisions.

Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.65 per cent; and the marginal standing facility (MSF) rate and the Bank Rate to 6.15 per cent. The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth, the governor said.

The broader Nifty 50 of the National Stock Exchange slumped 207.00 points or 1.21 per cent to 16,887.35 points against its previous session's close at 17,094.35 points.

Earlier, the Nifty started the day in the positive at 17,102.10 points and rose to a high of 17,114.65 points in the early morning trade. The Nifty fell sharply within an hour of the opening of the trade. It slumped to a low of 16,855.55 points in the intra-day.

The Nifty had gained 276.25 points or 1.64 per cent on Friday.

Maruti Suzuki slumped by 3.16 per cent to Rs 8544. Hindustan Unilever dipped 2.77 per cent to Rs 2622.20. ITC slumped 2.32 per cent to Rs 324.30.

There was heavy selling pressure in banking and financial stocks. IndusInd Bank slumped 2.55 per cent to Rs 1156.10. State Bank of India dipped 2.15 per cent to Rs 519.65. Kotak Bank slumped 2.03 per cent to Rs 1784.35. ICICI Bank dipped 1.71 per cent to Rs 848.05.

Bajaj Finance, LT, Axis Bank, Bajaj Finserv, MahindraMahindra, Infosys and Asian Paints were among the major Sensex losers.

The index heavyweight Reliance Industries Limited closed 0.14 per cent down at Rs 2374.30.

Only four of the 30 scrips that are part of the benchmark Sensex closed in the positive. Dr Reddy's Laboratories jumped 1.99 per cent to Rs 4420.15. Bharti Airtel, NTPC and Wipro also closed in the positive. (ANI)