No cheer for markets from RBI; Sensex down 134 points
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Last Updated: Tuesday, July 28, 2009, 13:43
Mumbai: The Bombay Stock Exchange benchmark Sensex fell by over 130 points at 1230 hrs after the Reserve Bank announced no change in key policy rates and projected an economic growth rate of six percent.

Markets declined with funds resorting to selling after RBI in its quarterly review of the monetry policy warned that the overall scenario continued to be uncertain with fiscal consolidation posing a challenge.

RBI's keeping the shot-term lending and borrowing rates disappointed investors who were expecting signals from the apex bank towards softening of interest rates further.

After opening higher, the 30-share Sensex fell by 134.51 points at 15,240.53.

The National Stock Exchange index also fell by 43.15 points at 4,529.15, after rising to 4,595.80.

Realty stocks bucked the trend to attract good buying and the sectoral index rose by 3.16 percent to 4,032.09 on fresh interest subsidy for home loans of up to Rs 10 lakh, which is seen as a booster to the housing sector.

With no signs from RBI on interest rates coming down, the banking stocks were trading lower. The banking index fell by 1.54 percent to 8.201.37.

Bureau Report

First Published: Tuesday, July 28, 2009, 13:43

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