MUMBAI: Indian shares ended lower on Tuesday after the broader NSE index hit a one-year high as investors booked profits ahead of a state ministers’ meeting to discuss the Goods and Services Tax bill.

The NSE index ended 0.52 percent down at 8590.65, after two consecutive sessions of gains, after touching a year high of 8644.90.

The BSE index pared early gains and closed 0.42 percent down at 27,976.52.

India’s second-largest drugmaker Dr Reddy’s Laboratories Ltd was the biggest percentage loser on the NSE index after its June-quarter profit slumped 75 percent.

Investors hope uncertainties about the much-delayed GST bill would be cleared as state finance ministers meet on Tuesday to discuss it ahead of a debate in the upper house of parliament.

The Bank of Japan is expected to ease policy after Governor Haruhiko Kuroda said on Saturday he would do so, if necessary, to achieve the 2 percent inflation goal.

The US Fed is expected to keep interest rates unchanged, according to a Thomson Reuters poll, but investors closely await its statement for clues on policy direction.

“The market is reflecting a combination of cautious sentiments and profit-booking today,” said Anand James, chief market analyst at Geojit BNP Paribas Financial Services.

“After NSE and BSE recorded huge gains on Monday, investors booked profits, partly due to the uncertainties surrounding the tax bill.”

Shares of Lupin Ltd fell as much as 1.63 percent after gaining around 10.9 percent so far this month as of Monday’s close. HDFC Bank was the biggest drag on the NSE, and was down 0.3 percent after gaining 6.17 percent so far this month as of last close.

Cement companies ACC Ltd and Ambuja Cements rose as much as 2.04 percent and 1.86 percent, respectively, ahead of their results scheduled later in the day.

Canara Bank’s shares were up 3.2 percent, after falling as much as 2.8 percent as quarterly profit more than halved.—Reuters