Indian shares fall over 1% as IT, banks weigh

BENGALURU (Reuters) - Indian shares fell over 1% early Thursday, pulled down by losses in information technology and banks, while a government move to raise taxes on fuel exports and domestic crude hammered energy stocks.

The NSE Nifty 50 index was down 1.2% at 17,552, as of 0351 GMT, while the S&P BSE Sensex dropped 1.23% at 58,806.99.

The Nifty IT index dropped 1.7%. Additionally, the bank index fell 0.9%.

Indian government late Wednesday raised taxes on aviation, diesel fuel exports, domestic crude oil, dragging the energy index down 1%.

Shares of SpiceJet slumped as much as 14.7% after its chief financial officer resigned, with the low-cost carrier posting a wider quarterly loss and facing increased scrutiny over mid-air incidents.

Meanwhile, India's economy grew at its fastest pace of 13.5% year-on-year in the April-June quarter, though economists flagged that growth could lose momentum in coming quarters as higher interest rates cool economic activity.

(Reporting by Nallur Sethuraman in Bengaluru;Editing by Dhanya Ann Thoppil)