New Delhi, Feb. 7 -- Hopes of a rebound after a 25 bps rate cut were dashed as the Indian stock market benchmarks-the Sensex and the Nifty 50-closed with losses on Friday, February 7, extending losses for the third consecutive session.

The Reserve Bank of India (RBI) announced a 25 bps rate cut on Friday. While rate cuts tend to improve market sentiment, the RBI's policy move failed to do so.

The Sensex closed at 77,860, down 198 points, or 0.25 per cent, while the Nifty 50 ended 0.18 per cent down at 23,559.95.

The BSE Smallcap index followed suit, closing 0.68 per cent lower. However, the BSE Midcap index outperformed the Sensex, gaining 0.13 per cent.

The overall market capitalisation of BSE-listed firms dropped to nearly Rs.424 la...