Indian shares slip from record peaks as Reliance drags

BENGALURU: Losses in energy and financial stocks pulled Indian shares down from record highs on Wednesday, with investors cautious ahead of key US inflation data due later in the week.

The blue-chip NSE Nifty 50 index closed 0.67% lower at 15,635.35 after earlier hitting an all-time high, while the benchmark S&P BSE Sensex fell 0.64% to 51,941.64.

For the year, the Nifty is still up around 12% and the Sensex has gained 9%, even as the second wave of COVID-19 battered the country.

"Valuations are not cheap, if we don't see a shakeout and some correction in the market, the upward momentum won't sustain itself," said Neeraj Dewan, director at New Delhi-based Quantum Securities.

Dewan added investors were also on the sidelines ahead of US inflation data and a key meeting of the European Central bank on Thursday.

US consumer price data could offer clues on the Federal Reserve's stance on tapering monetary stimulus, which could ultimately impact the flow of foreign funds into emerging markets such as India.

In Mumbai trading, Reliance Industries, India's largest listed company by market value, slid 1.8% and was the top drag on the indexes.

The Nifty Bank index slipped 0.8% to its lowest in nearly two weeks.

Gas marketing firm GAIL declined 3.2% after reporting a drop in quarterly profit and revenue.

Power utilities were the bright spot, with Nifty 50-component Power Grid Corp of India jumping 3.4%.

Tata Power climbed 6.5% after the antitrust watchdog cleared its acquisition of stakes in power utility companies in the Odisha state.