October 30, 2018 / 6:26 AM / 17 days ago

Indian shares erase early gains, energy stocks weigh

* NSE index down 0.1 pct, BSE 0.18 pct lower

* Reliance Industries top drag

* IT stocks supported by weak rupee

By Chris Thomas

Oct 30 (Reuters) - Indian shares gave up early gains to trade slightly lower on Tuesday, with falls in energy stocks outweighing gains in the IT sector and an extended rally in public sector banks driven by corporate earnings optimism.

In a day of volatile trade, the broader NSE index was down 0.1 percent at 10,240.65 as of 0555 GMT, while the benchmark BSE index was 0.18 percent lower at 34,007.02.

This follows a day of hefty gains, when both indexes closed at least 2 percent higher.

Heavyweight Reliance Industries, owner of the world’s biggest refining complex, weighed down the most on the index on Tuesday, with the stock falling as much as 2.2 percent.

Shares of Bharat Petroleum Corp Ltd fell as much as 4.8 percent after the company’s September-quarter profit nearly halved, hurt by higher expenses on account of forex losses.

Meanwhile, financials continued to boost, with top lender State Bank of India adding to gains posted in the previous session, climbing as much as 2.9 percent to a near three-week high.

A couple of banks have come out with a good set of results, so there is optimism on earnings growth in corporate banks, said Neeraj Dewan, director at Quantum Securities.

The Nifty PSU Bank index rose as much as 3.1 percent to its highest level since Sept. 21.

Union Bank of India posted a surprise quarterly profit on Monday as it set aside lower provisions for bad loans. Shares of the state-run lender jumped 7.4 percent in the current session.

The Indian rupee slipped to a one-week low of 73.628 against the dollar, boosting software services exporters such as Infosys Ltd and Tata Consultancy Services (TCS).

The Nifty IT index rose as much as 2.2 percent. Infosys climbed 2.7 percent, while TCS advanced 1.8 percent. ($1 = 73.5700 Indian rupees) (Reporting by Chris Thomas in Bengaluru; Editing by Rashmi Aich)

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