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Indian shares unchanged ahead of central bank rate decision

BENGALURU, June 4 (Reuters) - Indian shares traded flat on Friday, ahead of a central bank decision that could leave interest rates at record lows as the country grapples with a second wave of the pandemic.

The NSE Nifty 50 index and the S&P BSE Sensex were unchanged at 15,697.25 and 52,248.08, respectively, by 0347 GMT.

The focus will likely be on the Reserve Bank of India’s (RBI) messaging on providing adequate liquidity to support the economy.

“With a weaker economic backdrop and prospects for sticky inflation, the RBI has little option but to remain accommodative,” said Rahul Bajoria, an economist at Barclays in a preview note.

All 51 economists polled by Reuters expect the monetary policy committee to keep the key lending rate or the repo rate unchanged at 4% for a sixth straight time.

The blue-chip Nifty 50 and the Sensex have risen over 5% each since the central bank’s last meet in April, boosted by robust corporate results and falling daily COVID-19 cases. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Sriraj Kalluvila)

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