Indian shares closed slightly lower on Tuesday, snapping three sessions of gains, as investors booked profit after the central bank kept its policy interest rate unchanged, as was widely expected.

 

Outgoing Reserve Bank of India Governor Raghuram Rajan kept both interest rates and the cash reserve ratio on hold, leaving it to his successor to decide if inflation is subsiding enough after the monsoon season to make a cut.

 

The broader NSE index ended down 0.38 percent at 8,678.25, while the benchmark BSE index closed 0.35 percent lower at 28,085.16.

 

Both the indexes dropped as much as 0.8 percent earlier in the session.