Indian shares fall as Reliance, banks slip

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A general view of the Bombay Stock Exchange (BSE), after Sensex surpassed the 50,000 level for the first time, in Mumbai, India, January 21, 2021. REUTERS/Francis Mascarenhas

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BENGALURU, Feb 4 (Reuters) - Indian shares ended lower on Friday on losses in banks and Reliance Industries, taking the shine off a week in which the government's high-spending budget powered the blue-chip indexes to their first weekly gain in three.

The blue-chip NSE Nifty 50 index (.NSEI) fell 0.25% to 17,516.3 and the S&P BSE Sensex (.BSESN) slipped 0.24% to 58,644.82, also weighed down by lingering worries around interest rates and inflation.

The indexes closed the week around 2.5% stronger after the government lifted spending to boost the pandemic-hit economy.

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The Nifty PSU Bank index (.NIFTYPSU), which tracks state-owned lenders, slid 1.9% on Friday, with Bank of India (BOI.NS) dropping 3.3% despite reporting a jump in quarterly profit and better asset quality.

India's largest lender by assets, State Bank of India (SBI.NS), fell 1.8% in its worst performance since December.

Reliance Industries (RELI.NS), India's biggest company by market value, slid 0.9%.

Two-wheeler maker Hero MotoCorp (HROM.NS) slipped 2.2% after Thursday's sharp gains.

The Nifty Realty index (.NIFTYREAL) was among the worst performing sub-indexes, dropping 2.8%.

Godrej Properties (GODR.NS) slumped 9.7% after several brokerages raised doubts over the company's proposed investment in real estate development and construction company D B Realty Ltd (DBRL.NS).

Meanwhile, Tata Steel settled 0.8% higher ahead of its quarterly results. The Nifty Metal index (.NIFTYMET) climbed 1.2%, lifted by gains in Hindalco (HALC.NS) and Hindustan Copper (HCPR.NS).

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Reporting by Chris Thomas in Bengaluru; Editing by Aditya Soni

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