Indian shares lower

Indian shares snapped two sessions of gains to close lower on Wednesday after the Reserve Bank of India unexpectedly kept its repo rate unchanged, despite calls for action as an intense cash shortage threatens the economy. The broader NSE index fell as much as 0.81 percent, before ending 0.50 percent lower at 8,102.05. The benchmark BSE index closed down 0.59 percent at 26,236.87.
Financials were among the biggest losers, before recovering some lost ground after the RBI said it would withdraw the temporary 100 percent hike in the cash reserve ratio announced late last month. 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.
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 Thursday. "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. Sun Pharmaceutical Industries Ltd was the top percentage loser on the NSE index, shedding as much as 4.55 percent, on worries the US drug regulator would issue a report citing violations at its Halol plant in the western state of Gujarat.