BSE Sensex down; private banks fall

Reuters Market Eye - The BSE Sensex falls 0.82 percent while the 50-share Nifty is 0.76 percent lower. Asian Stocks fall sharply as investors were rattled by a radical bailout plan for Cyprus and pile into safer assets including the U.S. dollar, gold and sovereign debt.

Market will take direction after the outcome of RBI's rate-setting meeting on Tuesday and likely to gain if the central bank surprises with a higher-than 25 bps rate cut.

ICICI Bank falls 2 percent and Axis Bank falls 0.8 percent on concerns over money laundering allegations made last week.

State-run oil retailers fell after lowering petrol prices by 2 rupees per litre, while keeping diesel prices steady.

Indian Oil Corp falls 1.7 percent, Bharat Petroleum Corp down 2.7 percent and Hindustan Petroleum Corp is 1.2 percent lower.

However, Bajaj Hindusthan Ltd gains 1.8 percent, Shree Renuka Sugars Ltd is up 1.7 percent on hopes government will remove a requirement that they sell a portion of their sugar output to the government at reduced prices.

(Reporting by Manoj Dharra)