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Nifty, Sensex settle lower after RBI cuts rates

The Bombay Stock Exchange (BSE) logo is seen under a bull statue at the entrance of their building in Mumbai, India January 30, 2018. REUTERS/Shailesh Andrade/Files

BENGALURU (Reuters) - Indian shares fell for a fifth straight session and closed over 1% lower on Friday after the central bank cut interest rates as expected in an effort to revive growth in Asia’s third-largest economy.

The broader NSE Nifty closed down 1.23% at 11,174.75, while the benchmark BSE Sensex settled 1.14% lower at 37,673.31. For the week, both NSE and BSE fell nearly 3%.

The Reserve Bank of India maintained its “accommodative” stance and said it would keep that position “as long as it is necessary” to revive economic growth, while ensuring inflation remains within target.

The Nifty private bank index and the Nifty PSU bank index, which track state-owned banks, fell 2.5% and 1.89%, respectively.

IT stocks were among 13 gainers in the NSE Nifty, with India’s second-biggest software services firm, Infosys Ltd, settling 1% higher.

Reporting by Chandini Monnappa in Bengaluru; Editing by Maju Samuel