Sensex falls 205 points after RBI holds rate

Benchmark Sensex dropped 205 points to end at 32,597.18 after the RBI left the policy rate unchanged at 6 per % but raised the inflation forecast.

The six-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, kept the policy rate unchanged on expected lines but raised the inflation forecast for remainder of the current fiscal to 4.3-4.7 %.

The 30-share index



declined by 205.26 points, or 0.63 %, to 32,597.18 after hitting a low of 32,565.16 soon after the central bank announced its policy rate.

The wider Nifty hit a low of 10,033.35 before finishing at 10,044.10, down 74.15 points or 0.73 %. It had touched a high of 10,104.20 in early trade.

The central bank kept the economic growth forecast unchanged at 6.7 % for the fiscal ending March 31.