Markets pare some losses as RBI keeps repo rate unchanged at 6.25%

Banking stocks did not react much to the RBI decision, with Nifty Bank trading flat (up 0.01%)

Benchmark indices pared some losses after the Reserve Bank of India decided to keep the repo rate unchanged at 6.25% in line with the market expectations. Maintaining the ‘neutral’ stance, the Central Bank raised the FY17 GVA target for FY18 to 7.4%.
 
RBI narrowed monetary policy rate corridor as the Reverse Repo rate was hiked to 6% from 5.75%. The MSF rate was also cut to 6.5% from 6.5%. 
 
At 2:40 pm, the S&P BSE Sensex was trading at 29,837, down 136 points, while the broader Nifty50 was ruling at 9,227 down 37 points. BSE Midcap index gained