BSE Sensex edges up as RBI keeps door open for future rate cuts

MUMBAI (Reuters) - Indian shares held on to slight gains on Tuesday, lifted by the central bank's comment that its monetary policy was accommodative despite holding rates as widely expected.

The Reserve Bank of India surprised no one when it kept its repo rate unchanged at 6.75 percent, after consumer inflation picked up to a four-month high and as emerging markets brace for a U.S. rate hike.

All 45 respondents surveyed by Reuters last week had expected the RBI to keep the repo rate unchanged.

However, RBI Governor Raghuram Rajan's comment that the central bank was still accommodative eased market worries that the tone of the policy was less hawkish than feared.

The central bank has lowered the rate by 125 basis points this year, including a larger-than-expected 50 bps cut at its last policy review in late September.

"Maintaining status-quo was the best thing to do, you wait for the Fed to do what it wants and then you may need to react to that," said Jayant Manglik, president of retail distribution at Religare Securities.

Global markets are in limbo, bracing for a lift-off in U.S. interest rates when the Federal Reserve meets on Dec. 16.

The Nifty was up 0.42 percent, heading for its highest close since Nov. 4.

The Sensex was up 0.31 percent, on track for its highest close since Nov. 6.

Sentiment was also boosted after data released late on Monday showed the economy grew at a faster clip in the second quarter.

Asia's third-largest economy expanded by a 7.4 percent annual rate in the second quarter of the 2015/16 financial year that ends in March, compared with 7 percent in April-June.

Gains were led by blue chips. Reliance Industries gained 0.9 percent, Housing Development Finance Corp rose 0.94 percent and Hindustan Unilever increased 2.3 percent.

(Reporting by Karen Rebelo in Mumbai; Editing by Subhranshu Sahu)