Benchmark indices Sensex and Nifty fell for the second day in a row on Friday due to losses in HDFC Bank and ICICI Bank and negative performance in Asian and European markets.
Domestic market development continued to be weak due to the RBI's monetary policy and the unexpected announcement of a reduction in cash reserves in the banking system.

The 30-share BSE Sensex was down 365.53 points, or 0.56 percent, at 65,322.65. During the day, it rose 413.57 points or 0.62 percent to 65,274.61 points.
The NSE Nifty fell 114.80 points, or 0.59 percent, to end at 19,428.30. The Sensex pack included IndusInd Bank, NTPC, Asian Paints, Hindustan Unilever, JSW Steel, Tech Mahindra, Bajaj Finance, Infosys, Wipro, ICICI Bank, Bajaj Finserv, HDFC Bank and Tata Motors.
The winners were HCL Technologies, Power Grid, Titan, Reliance Industries, UltraTech Cement, Tata Steel, State Bank of India, and Mahindra.
"Domestic markets continued to face selling pressure as bank stocks continued to decline in response to RBI's liquidity-reducing measures," said Vinod Nair, head of research at Geojit Financial Services.
"Additional inflation concerns further weighed on domestic market sentiment. Despite lower-than-expected US CPI and UK GDP beating estimates, global sentiment remained negative, Nair added. The Reserve Bank of India (RBI) left its key interest rate unchanged for the third time in a row on Thursday but signaled tighter policy if food prices continue to boost inflation.
The optimistic sentiment was also boosted by the unexpected announcement of cash reduction in the banking system by raising the incremental cash reserve ratio (I-CRR) to 10% of the growing NDTL (net demand and current liabilities) over the last three months. . .