Both the Sensex and the Nifty dropped on Tuesday, after the Reserve Bank of India kept the policy interest rate unchanged and retained the growth forecast at 7.6% during the monetary review meet. While the Bombay Stock Exchange slipped 97.41 points to 28,085.16, the Nifty was down 33.1 points to 8,678.25.

In the 50-share index, 17 stocks ended higher while 34 closed lower, reported NDTV. Idea Cellular's stocks was down 5.77% to Rs 97.15 and Nifty's biggest loser on Tuesday. Stocks of Ambuja Cements, Grasim Industries and HDFC also slipped. Among the 17 gainers were Coal India, ONGC and Tata Power.

This is the first time in the past three days that the markets have dropped. According to analysts, investors had booked profits after the Central bank's bi-monthly review meet. RBI Governor Raghuram Rajan kept the repo rate – the rate at which the RBI lends to commercial banks – at 6.5%. Rajan was expected to leave it unchanged and wait for his successor to make any changes to it if necessary. The reverse repo rate – which commercial banks use to charge the central bank – also remained the same at 6%.