Morgan Stanley and HSBC each cut their India's economic growth forecasts for 2013/14 to 6.0 percent from 6.2 percent to reflect lower-than-expected growth in the October-December quarter.

HSBC says it expects 50 basis points of additional rate cuts in the calendar year 2013, and "a slightly more protracted recovery" in India.

Morgan Stanley says domestic and external environment still remain "challenging," but notes that an improving growth in the agriculture sector, a slight pick-up in export growth and more stable private capex could help improve economic growth.