Mumbai: India’s main stock index falls 0.51%, while the broader 50-share NSE index loses 0.61%, as banks lead decliners on expectations the RBI will ease rates less aggressively.
India’s benchmark inflation rose in May to 7.55%, though core WPI rose an estimated 4.85%, setting up expectations the RBI will still ease by 25 basis points on Monday, though it may not deliver the more aggressive action that some traders had hoped for.
Banking shares, as measured by the NSE banking index , fall 2.2%; had gained 7.3% so far this month as of Wednesday’s close.
Auto makers also fall after previously gaining on hopes aggressive rate cuts would lower financing costs for vehicle purchases.
The NSE auto index falls 0.9%; Tata Motors down 2.8%.