* NSE index down 0.3 pct, BSE index down 0.4 pct
* Reliance Industries falls on MS rating cut
* Indexes on track to fall for seventh session
By Krishna V Kurup
May 9 (Reuters) - Indian shares fell on Thursday, mirroring losses across Asia, as increased tensions ahead of crucial Sino-U.S. trade talks raised fresh concerns over global economic outlook.
Asian shares fell to six-week lows, with MSCI’s broadest index of Asia-Pacific shares outside Japan dropping over 1 percent.
Investors were on tenterhooks as they waited to see if Chinese Vice Premier Liu He can salvage a trade deal during two days of negotiations in Washington on Thursday and Friday, after U.S. officials said Beijing had backtracked on earlier commitments.
The broader NSE index fell 0.33 percent to 11,322.35 as of 0626 GMT, while the benchmark BSE index edged 0.38 percent lower to 37,645.46.
“If U.S-China trade talks don’t reach an agreement and United States goes ahead to impose tariffs on Chinese goods, we may see retaliation from China which will be detrimental to global growth,” said Saurabh Jain, AVP Research, SMC Global Securities.
“In the domestic market, many companies have resorted to borrowing money from bonds with equities as collateral, which has affected both debt and equity markets. While valuations are on the higher side, markets are also apprehensive about the outcome of the national election,” Jain said, adding that markets will have a rough ride in the next few days.
Both the indexes were on track for a seventh straight session of losses.
Shares of index heavyweight Reliance Industries Ltd dropped to their lowest in more than two months after brokerage Morgan Stanley cut rating on the stock saying global oil issues, and gas glut would hurt the conglomerate’s earnings.
Among the decliners, shares of Shriram Transport Finance Co Ltd fell to their lowest since Oct. 19 after the non-bank lender reported weak quarterly earnings.
A surge in Yes Bank Ltd and Zee Entertainment Enterprises Ltd limited losses on the indexes. Yes Bank snapped three days of declines to add more than 6 percent, while Zee gained 8 percent after five sessions of falls. (Reporting by Krishna V Kurup in Bengaluru; Editing by Shreejay Sinha)