Indian shares edge up after recent losses

MUMBAI, June 5 (Reuters): India's NSE index rose 0.2 per cent Friday, snapping a four-session losing streak as investors saw some of the blue chips such as Sun Pharmaceutical Industries as oversold even as broader sentiment remained cautious.

The NSE index was still headed for an around 3.5 per cent fall for the week, the second biggest weekly decline this year, after India forecast lower-than-expected monsoon rainfall in the months ahead.

That has raised worries the Reserve Bank of India could hold off cutting interest rates again after easing the repo rate by 25 basis points on Tuesday.

A Reuters poll conducted after the RBI policy review showed analysts still expected a further 25 bps cut later this year as markets wait to see how the monsoon will actually impact food prices.

"I think it's good that we are seeing bargain hunting. We reacted as if monsoon was done and dusted and inflation were spiking," said Gaurang Shah, vice-president at Geojit BNP Paribas.

"Some stocks are looking extremely attractive."

The broader NSE index was up 0.2 per cent after falling 3.6 per cent over the previous four sessions.

The benchmark BSE index was up 0.2 per cent, but down around 3.6 per cent for the week.