<b>RBI effect:</b> Sensex down 437pts; Ranbaxy up 2%

The Sensex continues to drift lower on account of the Reserve Bank of India's decision to hike the Cash Reserve Ratio and Repo Rate last Friday after market hours.

The index is now down 437 points at 12,635.

Tata Motors has tumbled over 7% to Rs 675. Bajaj Auto and Maruti have plunged nearly 6% each to Rs 2,283 and Rs 772, respectively. Hero Honda has dropped 4.5% to Rs 654.

SBI has slumped 5.8% to Rs 935. Larsen & Toubro has shed nearly 5% to Rs 1,540.

ONGC, ICICI Bank and HDFC Bank have slipped around 4.5% each to Rs 838, Rs 815 and Rs 909, respectively.

Ranbaxy has gained 1.7% at Rs 358.

Out of 2,256 stocks traded so far, 1,518 have declined, 682 have advanced and 56 are unchanged.