Zee Media Bureau
After announcement of RBI's first bi-monthly monetary policy review, the BSE benchmark Sensex dipped below 25,000-mark by falling over 500 points in afternoon trade Tuesday.
RBI today reduced the short-term lending rate by 0.25 percent to over 5-year low of 6.5 percent, taking the total cut to 1.5 percent since January last year.
Unveiling the first bi-monthly monetary policy for the current fiscal, RBI Governor Raghuram Rajan said banks have already cut interest rates by 0.25-0.5 percent and after today's rate cut borrowings will become cheaper further.
The 30-share index, which had gained 130.01 points in the previous session, was trading 438.31 points or 1.73 per cent lower at 24,961.34 with realty, auto, metal, banking, teck and IT stocks leading the fall.
The NSE Nifty also down by 138.45 points or 1.78 per cent at 7,620.35.