BENGALURU: Indian shares reversed early gains on Friday after hitting record highs for the second straight session as IT stocks fell on worries that robust economic data in the United States meant it would be a while before the Federal Reserve cuts rates.

The blue-chip NSE Nifty 50 was down 0.16% at 22,930.80 points, while the S&P BSE Sensex shed 0.15% to 75,307.49, as of 10:20 a.m. IST.

Eight of the 13 major sectors logged losses. The U.S.-rate sensitive IT sector dropped 0.4% after strong labour market and business activity data fueled concerns over tighter-for-longer monetary policy in the world's largest economy. IT companies earn a significant share of their revenue from the U.S.

Indian benchmarks closed at all-time high levels and posted their best session since March 1 on Thursday as the Reserve Bank of India's record dividend to the government boosted financials.

The blue-chips Nifty 50 and Sensex rose about 0.1% each, hitting record highs in early trade, before erasing the gains.

While some selling on profit is expected at record high levels, the momentum for Indian markets remains positive, Khemka added.

Honasa Consumer jumped 3% after the Mamaearth parent posted a fourth-quarter profit.

Drug maker Biocon gained 4%, hitting a 22-month high on signing a licensing and supply deal with South Korean firm Handok.

Financial services gained 0.1%, while state-owned lenders gained 0.5%.

(Reporting by Bharath Rajeswaran and Dimpal Gulwani in Bengaluru; Editing by Mrigank Dhaniwala, Sohini Goswami and Nivedita Bhattacharjee)