The Indian market ended lower on Thursday with Nifty breaching 11,600 levels after the Reserve Bank of India cut repo rate by 25 basis points to 6 percent, in a widely expected move. The central bank kept its monetary policy stance 'neutral' despite subdued inflation.

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The RBI also highlighted the need to boost domestic growth due to headwinds on the global front.

“The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish,” the RBI wrote in the policy statement.

The sentiment was also affected after Asian shares stepped back from eight-month highs amid fresh concerns about the ongoing Sino-US trade talks.

The S&P BSE Sensex ended at 38,684, down 192 points, while the broader NSE Nifty50 settled at 11,598, slipping 46 points. Broader markets were in-line with frontline indices with Nifty Midcap and Nifty Smallcap indices falling 0.2 and 0.4 percent, respectively.

"Market consolidated as the outcome from RBI monetary policy was in-line with expectation with a 25bps cut in rate. Investors turned cautious about the downward revision in GDP growth to 7.2 percent for FY20 while premium valuation and concerns over monsoon further impacted the sentiment. However, dovish view by the global central bank and a likely better results in Q4FY19 can stabilize the market in the near-future," said Vinod Nair, Head of Research, Geojit Financial Services.

Indiabulls Housing Finance, Zee, Ultratech Cements, Tata Motors, and Britannia were top gainers on Nifty, while TCS, Hindalco, HCL Tech, Yes Bank, and BPCL fell the most.

The Nifty Bank fell over half a percent post the policy announcement. IndusInd Bank, RBL Bank, Yes Bank Punjab National Bank, and Kotak Bank were down in the range of 1-2.5 percent. All banking indices were negative for the day with Nifty PSU Bank and Nifty Private Bank indices sliding 0.4 and 0.8 percent, respectively.

Among other rate-sensitive sectors, auto index was up 0.6 percent, while the realty was flat. HeroMoto Corp, Tata Motors Eicher Motors and Maruti Suzuki were among the top gainers on the auto sector, whereas, Godrej Properties, Prestige Estate, and Sunteck Realty were the top performers in the realty space.

Nifty’s IT index was among the top drags, down over 1 percent with TCS as the worst performer, down 3 percent. HCL Tech and Wipro were down 2.7 and 1 percent, respectively.

Globally, MSCI’s broadest index of Asia shares also lost 0.4 percent overnight after five straight days of gains had taken it to the highest level since late August. Losses were led by Australia and New Zealand while Hong Kong, the Philippines and Indian markets were also in red. Chinese shares were firmer with the blue-chip index up 0.6 percent while Japan’s Nikkei paused near a recent one-month top.