Indian shares ended lower, 10-year bond yields rose, and the rupee weakened on Thursday, after the country's central bank cut interest rates by a widely-expected 25 basis points.
The Reserve Bank of India (RBI) cut repo rate to 6.00 percent as predicted by 57 of 67 analysts polled by Reuters last week, in a move which is likely to boost the economy just a week before voting begins for the national elections.
The 10-year benchmark government bond yield rose to 7.50 percent after the central bank's decision, compared with Wednesday's close of 7.42 percent, while the rupee weakened to 69.04 to the dollar compared to the previous close of 68.42.
The benchmark BSE Sensex closed down 0.49 percent at 38,684.72 while the broader NSE Nifty ended 0.39 percent lower at 11,598.
Both indexes fell for a second day after gaining over 2.3 percent each in four sessions to Tuesday's close.
Tata Consultancy Services Ltd and HCL Technologies Ltd were among the top laggards on the NSE index, closing down 3.1 percent and 2 percent, respectively.
Index heavyweight Reliance Industries Ltd closed 1.6 percent lower.
