Indian equities fell on Wednesday, edging further away from record highs scaled last week as private banks and tech stocks extended losses, with broader concerns about the pace of global economic recovery also weighing on sentiment.

The blue-chip NSE Nifty 50 index declined 0.54% to 17,652.55 by 11 am, and the benchmark S&P BSE Sensex fell 0.69% to 59,253.9 in volatile trading ahead of the September F&O expiry on Thursday.

The Nifty index for volatility jumped 3.6%. Gaurav Garg, head of research at CapitalVia Global Research, said volatility would continue until the market saw a "healthy correction from record levels".

Broader market sentiment was also weighed down by economic uncertainties ahead of a scheduled tightening of U.S. monetary policy and deepening concerns about persistent inflation that have sent U.S. Treasury yields soaring.

"There seems to be some late realisations about the Federal Reserve's comments from earlier this month... with tapering now on the horizon," said Garg.

Tech stocks dropped about 1.3% and were down for a third straight session, with Tech Mahindra shedding nearly 2% to be the top Nifty 50 loser.

Meanwhile, the rupee crossed the 74.0 level against the dollar, as rising U.S. yields buoyed the greenback.

Private banks also extended losses, down 1.1%. ICICI Bank slipped 1.8% to lead losses on the sub-index.

Metal stocks advanced 0.8%, with Coal India jumping more than 10% to be the top Nifty 50 gainer.

Real estate stocks rebounded from the previous session's more than 3% drop, heading for the sixth session of gain in seven.

Meanwhile, shares of Future Group firms advanced after the National Company Law Tribunal on Tuesday allowed them to hold meetings to seek approval for a $3.4 billion retail assets sale to Reliance Industries.

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