MUMBAI (Reuters) - India's stock markets reversed losses while the rupee strengthened on Tuesday after the Reserve Bank of India (RBI) cut its key interest rate by 50 basis points versus expectations of a 25-basis-point cut.
The BSE Sensex was up 0.06 percent, while the NSE Nifty was up 0.1 percent. Both indices were down over 1 percent earlier in the session.
The RBI cut the repo rate by 50 basis points to 6.75 percent.
A Reuters poll last week showed 45 of 51 economists expected the RBI to cut the repo rate by 25 basis points to 7.00 percent, its lowest since May 2011. The RBI has already eased the policy rate by 75 bps so far this year.
(Reporting by Karen Rebelo in Mumbai; Editing by Biju Dwarakanath)