Indian shares ended lower on Wednesday after scaling record highs for two straight sessions as investors sold off high-flying banks, while consumer goods companies fell after poor earnings from Nestle.
Strong corporate earnings, progress in COVID-19 vaccinations and a high-spending federal budget have driven Indian stocks 12% higher in February, but some investors have also been taking profits from recent winners.
The Nifty ended 0.68% lower at 15,208.90, while the Sensex closed 0.77% lower at 51,703.83.
The three biggest drags on the Nifty 50 were HDFC Bank, mortgage lender HDFC and Kotak Mahindra Bank. The private-sector banks' index, which has climbed a market-beating 18% this month, fell 0.95%.
Nestle India shed 2.8% after its quarterly profit missed some analysts' expectations. Rival Hindustan Unilever fell 1.5%.
State-run lenders rose for a second straight session after Reuters reported that India had shortlisted four banks for potential privatisation.
Shares in the lenders - Indian Overseas Bank, Bank of Maharashtra, Bank of India and Central Bank of India - ended 20% higher for a second straight day.
Adani Ports and Special Economic Zone gained 3% after it earmarked $1.4 billion to develop a new port.
Global stock markets were also largely weaker on Wednesday.