After climbing to record highs for the seventh straight session in early trade, the benchmark BSE Sensex on Tuesday slipped into negative zone by falling over 38 points even as the RBI kept interest rates unchanged.
After a positive opening when it continued with its record-setting spree and hit a new record high of 22,485.77 points, the Sensex fell back to trade 38.06 points, or 0.17 per cent to 22,348.21 at 1145 hours soon after the Reserve Bank announced its policy review.
The Sensex had rallied over 1,265 points, or 6 per cent in March.
Brokers said the RBI’s decision to keep interest rates unchanged was largely in line with investor expectations and failed to have any immediate effect.
RBI, in its first bi-monthly monetary policy, left the short-term lending rate or repo rate unchanged at 8 per cent, and the cash reserve ratio static at 4 per cent.
Similarly, the wide-based National Stock Exchange index Nifty slipped below 6,700 level by falling 8.80 points, or 0.13 per cent, to 6,695.40. It had touched a lifetime high of 6,732.25 in early trade on Tuesday.
The banking sector index fell by 0.48 per cent, to 14,502.39, while realty index declined by 0.97 per cent to 1,454.15. points.
Forex market closed
There is no trading in the Interbank Foreign Exchange (Forex) and money market in Mumbai on Tuesday for annual closing of bank accounts.