Banking stocks took the maximum hit on Wednesday after the Reserve Bank of India kept repo and reverse repo rates unchanged.
While the BSE bankex fell 0.33 percent or 76 points to 23237 level, bank Nifty was down 50 points at 20,278 level before the policy was announced.
After the announcement, bank stocks took a hit with BSE bankex losing 219 points or almost 1 percent to 23,093 level.
All stocks on the BSE bankex were trading in the red. Punjab National Bank (1.59 percent) and ICICI Bank (1.30 percent) were the top losers on the index.
The index fell to an intra day low of 23,003 points, a loss of almost 320 points but recovered some ground later.
Bank Nifty too lost around 181 points to trade at 20,146 level.
The index fell to an intra-day low of 20,070 level shortly after the policy was announced.
The Reserve Bank of India (RBI) on Wednesday kept its repo rate unchanged at 6.25 per cent against a widely-anticipated cut of 25 basis points.
"On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee or MPC decided to keep the policy repo rate under the liquidity adjustment facility or LAF unchanged at 6.25 per cent," RBI press statement said.
Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility or MSF rate and the Bank Rate at 6.75 per cent.
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