Equity indices Sensex and Nifty fell nearly 1% on Thursday after the RBI held the policy rate steady for the ninth consecutive time, citing persistent food inflation. Sensex dropped 581.79 points to 78,886.22, while Nifty declined 180.50 points to 24,117.

The Sensex dropped 166 points to 78,593.07, and the Nifty fell 63.05 points to 23,992.55 due to late selling in banking and telecom stocks. Despite early gains from a rebound in Asian markets, weak US jobs data and upcoming RBI policy decisions contributed to the market's volatility and decline.

Equity market benchmark indices Sensex and Nifty experienced a sharp decline in early trading on Monday, mirroring the global market's significant weakness due to concerns about a potential slowdown in the US economy and foreign fund outflows.

Among the 13 indices, the Bank Nifty was the only laggard, dragged down by ICICI Bank, Federal Bank, and Axis Bank. "In the near term, banks are likely to underperform due to subdued earnings from major lenders like Axis Bank," noted an expert.

In the early trade on Wednesday, the stock market benchmark indices Sensex and Nifty decreased following their Budget day decline, as the government suggested an increase in securities transaction tax on futures and options.