Indian shares end lower as IT, auto drag

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A bird flies past the Bombay Stock Exchange (BSE) building in Mumbai, India, January 31, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, Nov 24 (Reuters) - Indian shares erased early gains to end Wednesday lower, as auto, IT and consumer stocks fell, outweighing gains in the energy and banking sectors.

The blue-chip NSE Nifty 50 index (.NSEI) ended 0.5% lower at 17,415.05, while the benchmark S&P BSE Sensex (.BSESN) fell 0.5% to 58,340.99.

A jittery broader Asian market also dented sentiment as oil prices remained volatile in the face of price-cooling moves by the United States and other countries, and amid concerns the U.S. Federal Reserve could speed up tapering of stimulus.

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"The market tried to consolidate after a fall earlier this week, but it looks like it was not able to hold gains, mainly due to global triggers," said Narendra Solanki, Head-Equity Research at Anand Rathi Shares & Stock Brokers.

Automobile stocks were likely reacting to automakers' lack of confidence on demand picking up in November and December, Solanki added.

Auto stocks (.NIFTYAUTO) fell 1.28%, dragged lower by Eicher Motors (EICH.NS) and Maruti Suzuki (MRTI.NS), down 2.39% and 2.34% respectively.

The Nifty IT index fell 1.52%, led by losses in Infosys Ltd (INFY.NS), Larsen and Toubro Infotech (LRTI.NS) and MindTree Ltd (MINT.NS), all down between 2.3% and 3.4%.

The fast-moving consumer goods sub-index (.NIFTYFMCG) was down nearly 1% on concerns over rising commodity prices impacting margins.

Nifty Energy (.NIFTYENR) was among sub-indexes that held on to gains, ending up 0.27%, with oil prices in focus after India said it would sell 5 million barrels from its reserves in tandem with other major countries to control prices.

State-run Oil and Natural Gas Corporation (ONGC.NS) was the top gainer on the sub-index, rising 4.26%.

Digital payments start-up Paytm (PAYT.NS) rose 17.2%, climbing for a second day on Wednesday.

Globally, investors have been focusing on rising COVID-19 cases in Europe, weaker economic sentiment in Germany, inflation concerns and a bagful of U.S. data ahead of Thanksgiving.

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Reporting by Vishwadha Chander in Bengaluru; editing by Uttaresh.V and Vinay Dwivedi

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