BSE Sensex edges lower; oil companies fall

Reuters Market Eye - The BSE Sensex is down 0.6 percent, while the broader Nifty is trading 0.5 percent lower. Oil and gas explorers are leading the losses, with ONGC sliding 5.4 percent and RIL falling 2.9 percent after the government deferred a decision to hike prices of locally produced gas.

However, losses were limited as auto stocks gained after Finance Minister Arun Jaitley said India had extended excise duty concessions for automobiles, among other sectors.

Investors were cautious ahead of the monthly derivatives contracts expiry for June, on Thursday.

Overseas investors bought shares worth of 6.95 billion rupees ($116.4 million) on Wednesday, provisional exchange data showed.

Asian shares swung higher on Thursday as weak U.S. growth seemed to further delay the day when interest rates might rise, pulling down bond yields globally and pushing investors toward riskier assets in desperate search for returns.($1 = 59.7000 rupees)

(Reporting by Indulal PM)