Sensex moves southwards after RBI policy

Zeebiz Bureau

Mumbai: The BSE benchmark Sensex dropped over 50 points in mid-session trade Tuesday after the RBI's mid-quarter monetary policy review.

The Reserve bank of India (RBI) in its mid-quarter review of monetary policy kept policy rates unchanged today.

Repo is the rate at which RBI lends money to the banks. It stands at 8 percent at present, leading to a high interest rate regime - much blamed for slowing industrial growth while the reverse rates stand at 7 percent.

The central bank has also kept the CRR unchanged. CRR is the portion of deposits that banks have to mandatorily park with RBI, which is 4.25 percent now.

The 30-share barometer fell by 54 points to 19,189. Similarly, the wide-based National Stock Exchange index Nifty fell 21 points to 5836.

Meanwhile, in Asia, Japan's Nikkei was up by 1.10 percent, while Hong Kong's Hang Seng gained 0.18 percent.The US Dow Jones Industrial Average ended 0.76 percent higher yesterday.

With PTI Inputs