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India shares fall nearly 1% after Moody's cuts outlook

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(Reuters) - Indian shares closed down nearly 1% on Friday after Moody’s Investors Service flagged domestic growth risks and cut its ratings outlook for the country, as well as some corporate companies and financial institutions.

The ratings agency lowered India’s ratings outlook to “negative” from “stable” on Thursday, citing increasing risks that growth in Asia’s third-largest economy will remain lower than in the past.

The firm also cut its ratings outlook for a clutch of companies to "negative", including HDFC Bank Ltd HDBK.NS, State Bank of India SBI.NS, Indian Oil Corporation Ltd IOC.NS and Infosys Ltd INFY.NS.

The NSE Nifty 50 index .NSEI closed down 0.86% at 11,908.15, while the benchmark BSE index .BSESN finished 0.84% lower at 40,311.21.

For the week, the NSE index eked out a gain of 0.15%, while the BSE index rose 0.39%.

The realty index .NIFTYREAL was the top gainer with a 1.66% rise, while the heavy-weight public sector index .NIFTYPSE fell 2.16%.

Yes Bank YESB.NS closed up 3.76% and was the top gainer on the NSE index, while Bharti Infratel Ltd BHRI.NS was the top loser, posting a 4.9% drop.

Reporting by Nallur Sethuraman in Bengaluru; Editing by Amy Caren Daniel