Sensex trades in red as RBI keeps rate unchanged

Mumbai: Market benchmark BSE Sensex was trading lower by over 126 points at 28,056.56 and the broader NSE Nifty remained below the crucial 8,700-mark after the Reserve Bank kept its key policy rates unchanged today.

Citing upside risks to the Reserve Bank's inflation target for March 2017, RBI Governor Raghuram Rajan today maintained status quo on key rates at his last policy review meeting, as was widely expected, but underlined that the central bank continues to be accommodative.

The 30-share index, which had lost over 55 points in the opening trade, dropped further to quote 126.01 points or 0.44 per cent to 28,056.56 soon after RBI announced its bi-monthly monetary review. The barometer had gained over 485.06 points in the previous three sessions.

The wider National Stock Exchange index Nifty dropped 40.10 points or 0.46 per cent to 8,671.25.