Sensex slides 113 points as RBI holds policy rate

Benchmark Sensex fell over 113 points in volatile trade to end at 34,082.71 today after the Reserve Bank left the key policy rate unchanged but lowered economic growth projection for 2017-18.

The central bank kept the interest rate unchanged as widely expected, but lowered economic growth projection to 6.6 per cent for 2017-18, from 6.7 per cent in its sixth bimonthly Monetary Policy statement today.

The 30-share index, which had bounced over 470 points in the opening trade in sync with positive leads from global markets, slipped into the negative zone as participants booked profits at higher levels and hit a low of 34,008.42. It finally finished at 34,082.71 points, down 113.23 points, or 0.33 per cent.

The barometer had lost 2,087.31 points in the previous six straight sessions.

The wider NSE Nifty too ended 21.55 points, or 0.21 per cent down at 10,476.70. Intra-day, it shuttled between 10,614 and 10,446.40.

The Reserve Bank opted for the widely expected status quo in key rates citing inflation concerns and flagged risks from wider fiscal deficit.

The repo rate, at which the central bank lends shortterm money, will continue to stay at 6 per cent. The reverse repo, rate at which it borrows from banks and absorbs excess liquidity, will remain at 5.75 per cent.