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 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.