MUMBAI (Reuters) - The Nifty posted its biggest fall in three weeks as doubts arose over whether a central bank interest rate cut on Tuesday would be the last one for some time.
The Reserve Bank of India cut its policy repo rate by 25 basis points to 7.25 percent, as widely expected.
The RBI's statement, however, signalled caution about inflation risks if monsoon rains disappoint, while the government released a forecast that raised fears of a possible drought.
The benchmark BSE Sensex closed down 2.4 percent at 27,188.38, while the broader Nifty ended 2.3 percent lower at 8,236.45.
(Reporting by Himank Sharma; Editing by Sunil Nair)
