The markets continue to trade flat. The Sensex is up 22 points at 20,378 and Nifty is up 10 points at 6127.
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updated at 1150
There has been little reaction to the mid-year Monetary Policy review by the Reserve Bank of India, which hiked the repo and reverse repo rates by 25 basis points (bps) each to 5.25% and 6.25%, respectively. However, the Cash Reserve Ratio (CRR) has been kept steady at 6%. The policy announcement was "largely in line with market expectations".
"India's growth of 8.8% in Q1 of 2010-11 suggests that the recovery set in the second half of 2009-10 is consolidating," the apex bank said in its policy statement.
Reserve Bank of India hiked the repo and reverse repo rates by 25 basis points each at 6.25% and 5.25%, respectively. Meanwhile, cash reserve ratio has been kept unchanged. The Central Bank has hinted that there are relatively low chances of rate actions in the near fututre.
The impact of the interest rate hike can be seen on real estate stocks as they are witnessing heavy selling pressure and the BSE realty index has shed more than 2 per cent or 76 points at 3663 followed by Auto, Oil & Gas and Metal indices.
Unitech is the top loser among the reallty stocks, the stock is down more than 2% at Rs 86 followed by Indiabulls Real Estate, DLF, Sobha Developers and Anant Raj Industries.
Meanwhile, Consumer Durables index leads the sectoral charts followed by capital goods, healthcare and PSU indices.
Broader markets are in line with the benckmark indices, the mid-cap index is up 14 points at 8457 ans small-cap index is up 10 points at 10,736.
