Sensex, Nifty erase gains; PM says Q1 GDP growth will be flat

MUMBAI (Reuters) - The BSE Sensex and Nifty edged lower on Friday, erasing earlier gains of more than 1 percent, as blue chip shares such as Reliance Industries fell after Prime Minister Manmohan Singh said that April-June GDP growth would be flat.

Addressing parliament, Singh said he expected growth in the first quarter of the new fiscal year to be relatively flat, but would pick up on the back of a good monsoon.

A Reuters poll of 36 economists expected India's gross domestic product to have expanded 4.7 percent year-on-year in the quarter to June, near decade lows on an annual basis and a tad under the 4.8 percent growth in the previous three months.

Reliance Industries Ltd fell 1.8 percent while Infosys Ltd lost 1 percent.

The broader NSE index fell 0.3 percent after earlier gaining as much as 1.1 percent, while India's benchmark index is down 0.2 percent after earlier gaining as much as 1.3 percent.

(Reporting by Abhishek Vishnoi; Editing by Rafael Nam)