Mumbai: Interest-rate sensitive bank and realty stocks on Tuesday witnessed selling pressure after the Reserve Bank left interest rate unchanged.
Among banking scrips, PNB tumbled 7.16 percent, Axis Bank plunged 3.24 percent and Kotak Mahindra Bank lost 2.86 percent on the 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 Ltd went down by 3.58 percent and Indiabulls Real Estate shed 3.13 percent on the BSE.
DLF was trading lower by 2.12 percent and Prestige Estates was down 1.14 percent.
The BSE realty index was trading with a loss of 1.24 percent at 1,793.13.
Disappointing markets and the industry, RBI Governor Raghuram Rajan today 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 percent, but cut the statutory liquidity ratio (SLR) - the amount of funds that lenders must set aside - by 50 basis points to 21.5 percent 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 1215 hrs.
