The BSE benchmark Sensex was volatile on Tuesday for the second day in a row and closes over 43 points lower as banking stocks tumbled on the RBI decision to keep interest rates unchanged,even though two-thirds of the Sensex stocks gained.
In choppy trade,the Sensex closed 43.10 points lower at 15,331.94 after moving between 15,463.46 and 15,240.53 points during the day. Among the 30 Sensex stocks,ten ended with losses while 20 gained.
The 50-share National Stock Exchange index Nifty fell by 8.20 at 4,564.10. It shuttled between 4,599.90 and a low of 4,529.15 points.
In the quarterly review of the monetary policy,the Reserve Bank,while keeping the repo and reverse repo — short-term rates at which banks lend and borrow from the apex bank — retained economic growth projection at 6 per cent with an upward bias in current fiscal.
The market ended lower after Reliance Industries,with the highest weight in the Sensex,Infosys,Hindustan Unilever,ICICI Bank,State Bank and Larsen and Toubro yielded notable ground. The six carry nearly 40 per cent weight in the Sensex.
ICICI Bank,the second-biggest bank,declined 6 per cent and the country’s largest,government-run State Bank of India fell by 1.70 per cent. Reliance Industries and Infosys fell 1.46 per cent and 1.51 per cent,respectively.