* NSE index up 0.28 pct, BSE index 0.19 pct higher
* RBI's rate decision expected at 0900 GMT
* Financial stocks gain; Sun Pharma down
By Darshana Sankararaman
Dec 7 Indian shares edged up on Wednesday on
hopes the central bank would cut interest rates later in the day
as Prime Minister Narendra Modi's currency gamble threatens to
hit nearly every aspect of the economy, from consumers to supply
A majority of the nearly 60 analysts polled by Reuters
predict the Reserve Bank of India will cut the repo rate
by 25 basis points to 6.00 percent, the lowest
since November 2010, while six expect a deeper 50 bps cut.
The announcement is due at 1430 India time (0900 GMT).
Globally, Asian shares edged up as investors covered short
positions and waited for clues about the future of the European
Central Bank's asset-purchase programme from a policy meeting on
"The market is expecting a minimum 25 bps cut in interest
rates," said Vinod Nair, head of research at Geojit BNP Paribas
Financial Securities, adding that it may not be enough to bring
back the economy to levels expected.
"Another rate cut is in the offing, with the debate centred
on the quantum," DBS said in research note.
"Consensus expects a 25 bps cut in the repo rate to 6
percent, with a small camp vying for a bigger 50 bps reduction.
Either way, it is amply clear that the RBI MPC (monetary policy
committee) is likely to prioritise growth over external
uncertainties, in light of the recent banknote ban."
The broader NSE index was up 0.28 percent at
8,165.70 by 0544 GMT, while the benchmark BSE index was
0.19 percent higher at 26,442.39.
Financial stocks rose with Housing Development Finance Corp
Ltd and ICICI Bank Ltd leading the gains.
Sun Pharmaceutical Industries Ltd was the top
percentage loser on the NSE index, shedding as much as 4.55
percent, on worries the U.S. drug regulator would issue a report
citing violations at its Halol plant in the western state of
(Reporting by Darshana Sankararaman in Bengaluru; Editing by