Indian shares gave up early gains to close lower on Wednesday, declining for a third straight session to their lowest close since late July, dragged by financials such as HDFC Bank Ltd and Housing Development Finance Corp as the rupee hovering near its record low spooked investors. The broader NSE index fell 0.39 percent to 11,234.35, while the benchmark BSE index declined 0.45 percent to 37,121.22.
HDFC Bank was the top drag on the NSE index, losing 1.4 percent. Housing Development Finance fell 1.4 percent. Tata Steel was the top percentage gainer, rising 2.8 percent. Jindal Steel and Power Ltd rose 3.1 percent. Shares of sugar companies rose after Reuters reported that the government is likely to consider a proposal to get mills to export 5 million tonnes of sugar by incentivising overseas sales in the 2018/19 season.
Dhampur Sugar Mills Ltd gained as much as 7 percent, while Uttam Sugar Mills Ltd rose as much as 7.1 percent. Meanwhile, asset management companies fell after market regulator on Tuesday cut total expense ratio for mutual funds. Reliance Nippon Life Asset Management Ltd and HDFC Asset Management Co Ltd hit record lows, declining as much as 10.3 percent and 9.1 percent, respectively.