Reuters Market Eye - The Bank Nifty is down 0.8 percent after the RBI unexpectedly raised its repo rate on Tuesday by 25 basis points. The banking index fell as much as 2 percent after the rate hike but retraced losses as the RBI's statement was seen as more dovish.
The RBI eased the sting from the rate hike by saying it was willing to become more accommodative should inflation ease faster than it currently anticipated, traders say.
State Bank of India is up 0.4 percent after earlier falling as much as 1 percent, while Bank of Baroda Ltd is up 1 percent after dropping up to 1.4 percent.
(Reporting by Abhishek Vishnoi)