Financials News

Sensex down 69 points as RBI keeps rate unchanged

Sensex down 69 points as RBI keeps rate unchanged

Mumbai: Market benchmark BSE Sensex was trading lower by about 69 points at 34,127.31 in late afternoon trade after the RBI kept its key policy rate unchanged and lowered economic growth projection for 2017-18.

The central bank kept the interest rate unchanged, as widely expected on inflation concerns, but lowered economic growth projection to 6.6 per cent for 2017-18, from 6.7 per cent in its sixth bi-monthly Monetary Policy statement on Wednesday.

The RBI kept the key policy rate unchanged at 6 per cent for the third consecutive time today in view of firming inflation.

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 monetary review of this fiscal.

The barometer has lost over 2,087.31 points in the previous six straight sessions. The wider National Stock Exchange index Nifty dropped 12.40 points or 0.12 per cent to 10,485.85.

Brokers said RBI’s decision to keep key interest rate unchanged was largely in line with investor expectations but lowering of economic growth projection dampened sentiments.

The BSE banking index was trading 0.09 per cent down at 29,169.66 points.

However, the BSE realty index was quoting 1.98 per cent higher at 2,411.44 points. Among rate sensitive scrips, Punjab National Bank, HDFC Bank, Yes Bank, IndusInd Bank and Axis Bank fell up to 1.22 per cent.

However, largest lender SBI was up 0.75 per cent.

PTI