Sensex, Nifty flattish; banks retreat after rally

Reuters Market Eye - The BSE Sensex and the Nifty were up 0.08 percent. Banking shares are falling after two straight days of gains sparked by rising hopes the Reserve Bank of India will cut interest rates as early as June.

State Bank of India falls 0.43 percent after gaining over 6 percent and HDFC Bank Ltd loses 1.18 percent after graining almost 5 percent.

Drugmakers' shares fall after the government formally notified a new drug pricing policy designed to increase the number of drugs deemed essential that are subject to price caps.

Dr.Reddy's Laboratories falls 1.72 percent and Ranbaxy Laboratories Ltd down 1.36 percent.

 

However, JM Financial Ltd surges 16.77 percent after the company said former Citigroup Inc chief executive Vikram Pandit would buy a stake in the Indian financial services company.