BSE Sensex, Nifty start 2015 on a weak note

MUMBAI (Reuters) - The BSE Sensex and the broader Nifty fell slightly amid low volume on Thursday, dragged down by blue-chips on the first trading day of 2015.

The Nifty ended 2014 with a 31.4 percent gain, and analysts expect the momentum to sustain this year on hopes the government will announce more economic reforms and the Reserve Bank of India will soon start cutting interest rates.

Overseas investors, who invested $16.1 million in Indian shares in 2014, continue their buying spree. They bought Indian shares worth 4.8 billion rupees ($75.86 million) on Wednesday, according to provisional exchange data.

"Indian markets have outperformed its Asian and global peers. Our market remains the hot investment option. And, this growth is expected to continue as cyclical, rate-sensitive and investment-oriented stocks find flavour with investors," said Kamlesh Rao, CEO of Kotak Securities.

The benchmark BSE Sensex was down 0.18 percent at 27,450.77, while the broader Nifty was lower 0.16 percent at 8,269.3.

Blue chips fell. Housing Development Finance Corp fell 0.8 percent, while NTPC Ltd dropped 0.7 percent.

However, reform-related stocks, especially state-run industrial and financial stocks, gained. Bharat Heavy Electricals Ltd gained 0.8 percent, while State Bank of India added 0.6 percent.($1 = 63.2775 rupees)

(Reporting by Indulal PM; Editing by Subhranshu Sahu)