MARKET EYE-Indian shares down; S&P warning weighs

* The BSE index

falls 0.64 percent, while the 50-share NSE index is down 0.68 percent, as profit-taking hits private lenders, including ICICI Bank .

* Sentiment is also impacted by S&P's remarks that India still faces a one-in-three chance of a credit rating downgrade within the next 24 months despite a new drive for economic reform.

* ICICI bank

falls 1.1 percent after gaining 1.14 percent on Tuesday, while HDFC Bank

falls 1 percent.

* Blue chip capital goods stocks also hit by profit-taking: Larsen & Toubro

falls 1.5 percent, while BHEL falls 2.4 percent.