RBI Polcy: Markets pare losses to turn flat

BSE Bankex was down 1% dragged by PNB, Bank of Baroda, IndusInd Bank and Axis Bank

Benchmark indices pared losses to turn flat as RBI kept repo rate unchanged at 6.25%. The Central Bank also changed its policy stance to 'Neutral' from 'Accommodative'. FY17 GVA target was lowered to 6.9% from earlier target of 7.1%.

MSF, Bank rate was left unchanged at 6.75% while Reverse Repo rate stayed at 5.75%. Rate on hold to assess demonetisation impact on inflation, output gap, said RBI adding that expect CAD to be below 1% of GDP for FY17.
 
Sensex fell as much as 160 points as soon as the policy was announced while Nifty breached its crucial 8,750