MUMBAI: Interest-rate sensitive bank and realty stocks witnessed selling pressure after the Reserve Bank of India left interest rate unchanged.

Among banking scrips, Punjab National Bank (PNB) tumbled 7.16 per cent, Axis Bank plunged 3.24 per cent and Kotak Mahindra Bank lost 2.86 pe cent on the Bombay Stock Exchange (BSE).

HDFC Bank fell by 1.95 percent, while SBI was quoting 1.72 percent down and ICICI Bank lost 1.54 percent. Tracking weakness in these stocks, the BSE banking index was trading 1.71 percent lower at 22,392.80.

From the realty pack, stocks of Anant Raj fell by 4.63 percent, Unitech was down 4.14 percent, Housing Development and Infrastructure (HDFC) went down by 3.58 percent and Indiabulls Real Estate shed 3.13 per cent on the BSE.

DLF was trading lower by 2.12 per cent and Prestige Estates was down 1.14 per cent. The BSE realty index was trading with a loss of 1.24 per cent at 1,793.13.

Disappointing markets and the industry, RBI Governor Raghuram Rajan on Tuesday left interest rate unchanged, saying there are no developments to warrant further easing since the unscheduled rate cut about a fortnight ago.

RBI kept the benchmark repurchase rate at 7.75 per cent, but cut the statutory liquidity ratio (SLR) - the amount of funds that lenders must set aside - by 50 basis points to 21.5 per cent of deposits from February 7, a move that will help banks to increase lending.

Stock markets fell sharply soon after the policy was announced. The broader market also surrendered its initial gains and the benchmark Sensex was quoting down by 219.43 points to 28,902.84 at 12:15 pm.

READ MORE: Sensex Recovers 130 Pts Ahead Of RBI Policy

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