BENGALURU: Indian shares fell sharply on Thursday and were set to snap a three-day rally as investors sold off high-flying metal and bank stocks, while a rise in US bond yields soured investor sentiment globally.

The NSE Nifty 50 index fell 1.04% to 15,088.80 by 0355 GMT, while the S&P BSE Sensex slipped 1.1% to 50,925.74. Still, both the indexes were roughly 4% higher for the week.

Forty-six of the 50 stocks on the Nifty were in the red early on Thursday. The Nifty metal index slipped 2.1%, erasing some of the meaty gains recorded earlier this week.

Private-sector lenders slid 2.12%, dragged down by a near 3% drop in index heavyweight HDFC Bank.

Nifty's PSU bank index was flat, having dipped as much as 1.76% earlier.

State-owned banks' balance sheets have improved, and bad loan formation should moderate going forward, brokerage Morgan Stanley said in a note on Wednesday.

Bucking the trend, Adani Ports rose 1.5% and was the top percentage gainer on the Nifty after the port operator said it would buy a 31.5% stake in Gangavaram port for 19.54 billion rupees ($267.65 million).

Broader Asian shares were lower on worries about rising U.S bond yields, with MSCI's ex-Japan Asian-Pacific shares slipping 1.7%.