* NSE index down 0.51 pct, BSE index falls 0.53 pct
* CPI data expected later in the day
* Nifty PSU bank index down as much as 1.34 pct
By Vishal Sridhar
June 12 Indian shares fell on Monday as
investors booked profits in recent outperformers including
lenders ahead of inflation data due later in the day, while
sentiment was cautious ahead of the U.S. Federal Reserve policy
meeting this week.
Inflation in India is expected to have cooled to a new
record low of 2.60 percent in May, a Reuters poll found, which
could add pressure on the Reserve Bank of India to cut interest
rates later in the year.
Asian markets were also lower - with MSCI's broadest index
of Asia-Pacific shares outside Japan down 0.8
percent - as shares of electronic products makers fell on
caution ahead of the Fed, which is expected to raise rates and
signal further increases this year.
"The market has been moving up for quite sometime and it
needs to consolidate," said Arun Kejriwal, founder of Kejriwal
Research & Investment Services, adding that the fall in banking
and IT stocks was owing to profit booking.
The broader NSE index was down 0.51 percent at
9618.55 as of 0643 GMT, while the benchmark BSE index
was 0.53 percent lower at 31096.40.
Banking stocks fell as sentiment took a hit after India's
western state of Maharashtra agreed on Sunday to write off all
loans availed by farmers.
Nifty PSU bank index dropped as much as 1.34
percent, with all its members trading lower, and recorded its
biggest intraday percent loss since May 29, while the Nifty Bank
index slipped as much as 0.62 percent.
The Nifty IT index fell as much as 1.23 percent,
with Wipro Ltd losing as much as 3.04 percent to its
lowest in over two weeks.
(Reporting by Vishal Sridhar in Bengaluru; Editing by Vyas