WPI inflation declined due to a favourable base, with the food, non-food manufacturing, minerals, and fuel and power segments contributing to the dip.

That inflation print will likely offer more scope for the Reserve Bank of India to continue cutting the interest rates.

India's consumer inflation rate likely eased to a more than six-year low of 3% in May thanks to a favourable base and a further moderation in food prices, a Reuters poll forecast, supporting last week's larger-than-expected interest rate cut.