A very divided market awaits the RBI's monetary policy review later in the morning, with traders saying the central bank may well deliver a surprise rate cut -- its second unexpected action in a week.
Headline inflation on Wednesday picked up on Wednesday, which would appear to rule out new monetary easing, especially after the RBI already delivered a cut in the cash reserve ratio last week.
However, the same data showed non-food manufactured inflation slowed to a 14-month low, arguing for a potential cut in interest rates.
The main 30-share BSE index fell 0.4%, after ending the prior session at its highest close since February 24. The 50-share Nifty index fell 0.5%.
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