BENGALURU: Indian shares closed lower on Wednesday, weighed down by banking stocks, though shares of the country's biggest lender State Bank of India hit an all-time high after reporting a record quarterly profit.

The blue-chip NSE Nifty 50 index closed 0.33% lower at 17,829.20, while the benchmark S&P BSE Sensex fell 0.43% to end at 59,771.92.

Despite Wednesday's losses, both indexes clocked gains of about 0.8% each for the holiday-shortened week, rebounding from last week's sharp falls triggered by overvaluation concerns and heavy foreign selling.

In Mumbai trading, State Bank of India ended 1.1% higher after touching an all-time peak earlier in the session. The country's largest lender reported a record quarterly profit as provisions for bad loans more than halved.

Indian shares snap three-day losing streak, end over 1% higher

However, the broader Nifty Bank Index fell 1.34%, snapping a two-day winning streak.

The Nifty Auto Index lost 1.04%, after gaining for three consecutive sessions on the back of strong October sales for automakers and an upbeat earnings report by Tata Motors.

The Nifty Metal Index, which gained 0.93% after posting heavy losses in the previous session, along with realty stocks limited some of the main index's fall.

The Nifty Realty Index rose for a fourth consecutive session, adding 1.94%, as the festive season adds to demand for housing and office spaces.

Indian markets will be open for a special "muhurat" trading session on Thursday and will be closed on Friday for the festive season of Diwali.

Traders will also be looking out for the US Federal Reserve's policy statement at 1800 GMT. Markets are almost certain the Fed will announce the tapering of its $120 billion-a-month asset purchase programme.