Markets turn choppy after RBI maintains status quo on policy rate

The benchmark indices continued to trade flat after the Reserve Bank of India (RBI) kept the repurchase (repo) rate unchanged and reduced the Statutory Liquidity Ratio (SLR)  to 20% in its second bi-monthly monetary policy for financial year 2017-18.   

At 2:57 pm, the S&P BSE Sensex was trading at 31,259, up 69 points, while the broader Nifty50 was ruling at 9,655, up 18 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices added 0.2% and 0.5%, respectively. 

Stocks of the rate-sensitive sectors such as banking, realty and auto extended gains after policy outcome.

The Nifty Realty index (up 0.7%) was the leading sectoral gainer. Indiabulls Real Estate, Sobha and HDIL gained the most on the index. 

The Nifty Bank rose 0.4%, led by gains in ICICI Bank, Bank of Baroda, PNB and State Bank of India, which gained in the range of 3-5%.

The Nifty Auto index was trading 0.5% higher, with Bharat Forge, M&M and Eicher Motors gaining up to 2%. 

IT stocks hogged the limelight. The Nifty IT index (down 2.5%) was the lone sectoral loser. TCS, Tech Mahindra, HCL Tech and Wipro were the top losers on Nifty and shed up to 3% on the NSE. 

Overseas, European stocks were trading mixed as investors remained cautious ahead of Thursday's UK election and the European Central Bank's policy decision. 

The pan-European Stoxx 600 was 0.12 percent lower, while Britain's FTSE 100 and France's CAC 40 added 0.2% each.