Reuters Market Eye - The BSE Sensex and the Nifty fall around 0.7 percent. The Bank Nifty is off highs, and is up 1.3 percent after earlier rising as much as 5.93 percent after India's central bank eased cash and bond holding rules for banks late on Tuesday.
Book value or net worth of state-owned banks would become more opaque after the Reserve Bank of India eased bond holding rules, Morgan Stanley said in a report on Tuesday.
State Bank of India is down 0.2 percent after earlier rising as much as 5.5 percent, while ICICI Bank Ltd is down 0.3 percent, also retracing intra-day gains.
Falls also track lower global shares on concerns that minutes of the U.S. Federal Reserve's July policy meeting may add to suspicions it will soon pare back on stimulus.
(Reporting by Abhishek Vishnoi)