Mumbai, Dec 6 (PTI) Benchmark Sensex dropped 205 points

to end at 32,597.18 today after the RBI left the policy rate

unchanged at 6 per cent but raised the inflation forecast.

The six-member Monetary Policy Committee (MPC), headed by

Reserve Bank of India Governor Urjit Patel, kept the policy

rate unchanged on expected lines but raised the inflation

forecast for remainder of the current fiscal to 4.3-4.7 per


The 30-share index declined by 205.26 points, or 0.63 per

cent, to 32,597.18 after hitting a low of 32,565.16 soon after

the central bank announced its policy rate.

The wider Nifty hit a low of 10,033.35 before finishing

at 10,044.10, down 74.15 points or 0.73 per cent. It had

touched a high of 10,104.20 in early trade.

The central bank kept the economic growth forecast

unchanged at 6.7 per cent for the fiscal ending March 31.

Interest rate-sensitive stocks took a beating, dragging

the BSE banking index down by 1.23 per cent. SBI, ICICI Bank,

Axis Bank, HDFC Bank, Bank of Baroda, Punjab National Bank and

Yes Bank fell by up to 2.27 per cent.

This is published unedited from the PTI feed.