Among bank scrips, PNB tumbled 7.94 percent, Axis Bank was down 4.95 percent, and Bank of India fell by 4.59 percent on the BSE.

Shares of Canara Bank went down by 3.51 percent, Kotak Mahindra Bank lost 3.33 percent, Yes Bank (3.09 percent), SBI (2.49 percent), ICICI Bank (1.48 percent) and HDFC Bank (1.76 percent).

Led by losses in these stocks, the BSE banking index fell by 2.61 percent to end at 22,188.53.

From realty scrips, HDIL plunged 4.67 percent, Anan Raj (4.34 percent), Indiabulls Real Estate (3.44 percent), Unitech (2.85 percent) and DLF (1.54 percent).      

Following the dip in these scrips, the BSE realty index shed 1.43 percent to 1,789.80.

Auto stocks also faced selling pressure with Bajaj Auto falling 3.74 percent, M&M (3.52 percent), Maruti (1.69 percent).

"Markets showed its disappointment on the outcome of monetary policy by trimming the day's gains," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Awaiting cues from the Budget, RBI Governor Raghuram Rajan on Tuesday left interest rate unchanged saying there was no case for a reduction now and hoped banks will pass on the
benefit to consumers from the last rate cut.

The Reserve Bank maintained the benchmark repurchase rate at 7.75 percent, while leaving broad hints that future cuts will depend on the fiscal consolidation path to be provided by Finance Minister Arun Jaitley in his first full budget later this month, as also on inflation and other macroeconomic data.

RBI, which announced a surprise interest rate reduction of 0.25 percent on January 15, said there has been no significant development since then to warrant any further easing of monetary stance.

Meanwhile, in the broader market the BSE benchmark Sensex ended 122.13 points lower at 29,000.14.

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