June 6, 2019 / 4:34 AM / 2 months ago

Indian shares lower as RBI policy decision awaited

* NSE index down 0.17%, BSE index down 0.09%

* RBI policy decision later in the day

* DHFL tanks after rating downgrade

June 6 (Reuters) - Indian shares edged lower on Thursday as investors remained on the sidelines ahead of the outcome of the central bank’s policy meet later in the day.

According to a Reuters poll of 66 economists, two-thirds have predicted that the RBI will cut its repo rate by 25 basis points, bringing it to 5.75% - the lowest since July 2010. It is then expected to keep policy on hold at least until the end of next year.

The broader NSE index was down 0.17% at 11,999.80 as of 0400 GMT, while the benchmark BSE index was 0.09% lower at 40,042.03.

The Indian rupee weakened as much as 0.27%.

“What RBI (Reserve Bank of India) is going to do, we’ll have to wait and see,” said AK Prabhakar, head of research at IDBI Capital in Mumbai. “There is some selling, maybe it is profit booking. But one has to be a bit careful.”

Shares of State Bank of India slipped nearly 2% and Yes Bank Ltd’s shares fell as much as 5.43%. Both stocks were among the top losers on the NSE index.

Shares of home loan lender Dewan Housing Finance Corporation Ltd fell as much as 18.30% to its lowest since December 2013. Ratings agencies ICRA Ltd and Crisil Ltd slashed ratings on the company’s commercial paper programme on Wednesday.

Meanwhile, Power Grid Corporation of India Ltd and Indian Oil Corp Ltd advanced over 2% and were among the top gainers on the NSE index. (Reporting by Chandini Monnappa in Bengaluru; editing by Uttaresh.V)

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