Sensex, Nifty Edge Lower After RBI Holds Rates Steady; Banks Worst Hit

Six of 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Bank index's 1 per cent decline.

The Indian equity benchmarks edged lower on Friday on account of profit booking in banking shares after the Reserve Bank of India held key interest rates steady at record lows as widely expected and maintained it accommodative stance to revive the country's economic growth. The Sensex fell as much as 157 points and Nifty 50 index touched an intraday low of 15,622.35. HDFC Bank, Reliance Industries, ICICI Bank and State Bank of India were among the top drags on the Sensex. The Sensex slipped 132 points to close at 52,100 and Nifty 50 index declined 20 points to settle at 15,670. The Reserve Bank of India (RBI) held the repo rate, its key lending rate, at 4 per cent and kept the reverse repo rate, the borrowing rate, unchanged at 3.35 per cent. Analysts said there were no major surprises to lift the markets higher even though the central bank assured ample liquidity.