In view of the deteriorating global situation and domestic inflation, the RBI has lowered its GDP growth projection for the current fiscal to 7 per cent from its earlier forecast of 7.2 per cent.
The Head of Retail Research, Motilal Oswal Financial Services, said markets are likely to remain range-bound ahead of US Fed interest rate decision to be announced on September 21.
Both the benchmark indices were trading lower later, with the Sensex falling 146.56 points to 58,884.74 and the Nifty declining by 43.95 points to 17,533.55.
The BSE Sensex and the NSE Nifty have shed 1,524 points and 465 points, respectively, since Friday.
The 30-share BSE benchmark ended 20.86 points or 0.04 per cent higher at 58,136.36 with 16 of its constituents ending in the red.
Markets in Europe were also trading in the negative zone in the afternoon session. Meanwhile, international oil benchmark Brent crude tumbled 4.44 per cent to USD 101.92 per barrel.
For 2021-22 fiscal, the BSE Sensex jumped 9,059.36 points or 18.29 per cent while the Nifty rallied 2,774.05 points or 18.88 per cent.
Equity exchanges in Tokyo, Hong Kong, Seoul and Shanghai ended with gains after the US stocks ended largely higher in the overnight session, European stocks were also trading higher.
Sectoral indices, led by metal, realty, consumer durables, capital goods, healthcare, auto, FMCG, power and teck, were trading in the negative terrain, falling up to 3.38 per cent.
On Friday, PNB shares fell 2.1 per cent to end at Rs 125.65 apiece on the BSE. During intraday trades, the stock had tanked 6.03 per cent to its 52-week low of Rs 120.60.
The 30-share index, which had bounced over 470 points in the opening trade, was quoting 68.63 points, or 0.20 per cent lower at 34,127.31 soon after the RBI announced its sixth bi-monthly review.
The benchmark BSE Sensex ended 0.03 percent higher at 33,157.22, but still posted a record closing high. The index gained 1.8 percent for the week.
The trading was backed by sustained buying mainly in realty, metal, banking, power, oil & gas and utilities stocks amid firm Asian cues.
The stock was the worst performer among the bluechips on both the key indices today, after Vishal Sikka, the first non-founder CEO of the company, resigned.
The benchmark BSE Sensex closed down 0.68 percent at 31,797.84, its lowest close in over three weeks.
Counters of realty, FMCG, banking and capital goods saw heightened pace of activity despite lower Asian cues.