The Sensex ended the day higher by 33 points, while the Nifty closed higher by 6 points in trade.
Banking stocks were clearly under pressure after the Reserve Bank of India decided to keep policy rates on hold. Among the banking stocks that lost ground were PSU banking stocks like IDBI Bank, Syndicate Bank and Bank of India. Private sector majors like ICICI Bank also ended the day lower.
DLF was the top loser from the Nifty pack cracking almost 5 per cent in trade. IDFC and Jindal Steel were the other losers from the Nifty pack.
Realty stocks like Unitech and Indiabulls also saw some deep cuts following the RBI's decision to keep interest rates steady.
Maruti, Reliance Industries and HDFC were among the few Nifty gainers in trade. In fact, Reliance gained after Deutsche Bank raised the target price of the company and put a buy rating.
Shares in Aurobindo Pharma hit a record high of Rs 979 in trade. Mid cap stocks had a quiet day in trade with select refinery stocks gaining ground on dropping crude prices.