Markets slip as RBI holds rates

Equities suffered for the second straight session on Wednesday after the Reserve Bank kept interest rates on hold but raised the inflation forecast, dashing medium-term rate cut hopes and sparking a sell-off in the banking stocks.

The Sensex slumped 205 points, or 0.63 per cent, to end at 32,597.18, while the broader NSE Nifty finished at 10,044.10, down 74.15 points, or 0.73 per cent.

The six-member Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, kept the policy rate unchanged at six per cent on expected lines but raised the inflation forecast for the remainder of the fiscal year to 4.3-4.7