UPDATE 1-INDIA MARKETS-Stocks, bond yields down after policy

(Updates with closing levels)

* Property, bank stocks fall after India policy measures

* Long term bond yields down after RBI raises SLR

* Imminence of policy tightening to push yields up later

* Reuters poll: Analysts split on hike by end-Jan

By Jeanette Rodrigues

MUMBAI, Oct 27 (Reuters) - Indian property and bank stocks fell sharply on Tuesday, dragging down the main index, after the central bank signalled its intent to raise interest rates soon and warned of asset bubbles and inflation.

India's real estate stock index closed down 6.2 percent at its lowest in more than two months, and banking stocks fell 3.8 percent, dragging the main index .BSESN down 2.3 percent. The BSE index was the worst performer in Morgan Stanley's benchmark index for Asia ex-Japan .MIAPJ0000PUS.

At the same time, longer-tenor government bonds rallied, pushing yields down, after the Reserve Bank of India raised the proportion of deposits banks have to invest in bonds.