Mumbai: Bond prices and stocks dropped while the rupee weakened against the dollar on Monday after the Reserve Bank of India surprised markets by keeping both the repo rate and the cash reserve ratio unchanged.

The 30-share barometer, which had soared past the 17,000-level in early trade by adding 153 points, fell by 204.17 points to 16,745.12 soon after the Reserve Bank decided to keep all key interest rates unchanged at its mid-term credit policy review.

Similarly, the National Stock Exchange index Nifty fell by 61.55 points to 5,077.50.
The fall was mostly lead by interest rate sensitive stocks such as banking and realty.
Among the sectoral indices, the BSE realty index down by 2.15 percent to 1,587.90 points, while the Banking index shed 2.76 percent to 11,266.46.

The benchmark 10-year bond yield rose 9 basis points to 8.43 percent from levels before the announcement, while the new 10-year bond yield rose about 7 basis points.

The rupee weakened to 55.53 per dollar from around 55.35 before the RBI move.


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