Indian shares fall as investors take profits after record-setting rally

BENGALURU: Indian shares fell on Wednesday as investors sold high-flying stocks after a record-setting rally last week, with declines in Reliance Industries and banking stocks weighing the most.

India's main stock indexes have gained more than 10% in February on optimism from a high-spending federal budget and upbeat corporate earnings, but with benchmarks already scaling multiple record highs, the rally has been losing steam.

The NSE Nifty 50 index swung between gains and losses through morning trade in Mumbai and was last down 0.63% at 15,013.50 by 0510 GMT. The index ended marginally lower on Tuesday after a six-day rally.

The S&P BSE Sensex was 0.60% lower at 51,021.92.

Conglomerate Reliance Industries was the biggest drag on the Nifty 50, falling 1.1%.

HDFC Bank and Axis Bank were also among the top drags, falling roughly 1% each. Both stocks have climbed 10%-15% each this month.

"Some profit-taking is logical at this stage. A majority of the third-quarter results have almost been completed and a lot of those benefits have been factored into the prices," said Vinod Nair, head of research at Geojit Financial Services in Kochi.

Thirty-seven Nifty 50 companies that have so far reported December-quarter results have, on average, topped analysts' expectations by about 3.5%, Refinitiv data showed.

Tata Steel rose as much as 3.6% after the Nifty 50 component swung to a profit in the December quarter. The stock was last up 0.5%.

Muthoot Finance was up 3% after reporting higher profit and interest income.

Financial results for four other Nifty 50 firms - watch and jewellery maker Titan, gas utility GAIL, aluminium group Hindalco, and motorcycle and truck producer Eicher - are expected later on Wednesday.

Other Asian stocks also edged higher on upbeat Wall Street earnings and optimism about a global recovery.