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India's Nifty falls, bonds weaken as monsoon forecast knocks rate cut hopes
Mumbai/ New Delhi, June 3 (ANI): Forecast for weak monsoon rains have raised doubts over whether the RBI could follow up Tuesday's interest rate cut with another this year. India's main share indexes lost over two percent on Tuesday. The Bombay Stock Exchange (BSE) Sensex closed 2.4 percent weaker, and the Nifty closed 2.3 percent down. The RBI cut its policy repo rate by 25 basis points to 7.25 percent, as widely expected. The RBI's statement, however, signalled caution about inflation risks if monsoon rains disappoint, while the government released a forecast that raised fears of a possible drought. A market expert, Sunil Shah, warned that bad monsoon could worsen the scenario. Another market expert, Akash Jindal said inflation is also one of the main concerns of the economy.