* NSE index down 0.28 pct, BSE index 0.24 pct lower
* Tata Motors, M&M among biggest losers
* Shares retreat from 4-mth highs
By Arnab Paul
Feb 7 Indian shares retreated on Tuesday from
four-month highs hit in the previous session as investors stayed
on the sidelines ahead of the central bank's policy meeting.
Analysts expect the Reserve Bank of India (RBI) to cut the
repo rate by 25 basis points on Wednesday after
December inflation hit a two-year low. But they warn it will be
a close call since the central bank may even opt to maintain
status quo until its next review in April.
RBI may keep rates unchanged as it continues to assess the
impact of the crackdown on high-value notes on inflation, some
Most Indian automakers were down, contributing to over
three-fourths of NSE index's decline, with Tata Motors Ltd
and Mahindra & Mahindra Ltd falling as much
as 2.4 percent and 1.7 percent respectively.
Banks have already slashed lending rates this year after
deposits surged following the ban on high-denomination currency
notes, reducing the need for further rate cuts.
"I don't think that the RBI will cut interest rates this
time," says Sangeeth V, an institutional sales trader with
"Banks are already flush with funds post-demonetization."
The broader NSE index was down 0.28 percent at
8,777.30 as of 0604 GMT while the benchmark 30-stock BSE index
was trading 0.24 percent lower at 28,371.40.
On Monday, both the indexes hit their highest since late
Among the gainers, ITC Ltd rose to a record high.
Government-owned Specified Undertaking Of The Unit Trust Of
India sold a two-percent stake in the country's biggest
cigarette maker via block deals.
Railway coach maker Titagarh Wagons Ltd rose as
much as 7 percent after getting a contract worth one billion
rupees from the Ministry of Earth Sciences. ($14.84 million)
($1 = 67.3750 Indian rupees)
(Reporting by Arnab Paul; Editing by Vyas Mohan)