Sensex range-bound as RBI keeps key policy rates unchanged

Indian stock markets' key indices - Sensex and Nifty - were range-bound with a negative bias Tuesday after the Reserve Bank of India (RBI) left key interest rates unchanged, as expected.

The 30-scrip S&P Sensex (sensitive index) of the Bombay Stock Exchange (BSE), which opened higher at 22,455.23 points, touched a new record high of 22,485.77 points intra-day.

However, the markets pared the gains and the Sensex was trading at 22,316.96 points at early afternoon session, down 69.31 points or 0.31 percent from its previous day close at 22,386.27 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) was trading 0.28 percent or 18.65 points down at 6,685.55 points.

The Reserve Bank of India (RBI) in its first bi-monthly review left key policy rates unchanged.

The repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, has been left unchanged at 8 percent.

The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 7 percent.

There were selling pressure in banking, capital goods, and realty stocks.

Banking index of the BSE was down 1.51 percent. Capital goods index fell by 1.16 percent and realty index was down 1.16 percent.