BENGALURU, Jan 25 (Reuters) - Indian shares declined on Thursday, dragged by information technology stocks (IT) following disappointing results from Tech Mahindra and as financial stocks continued to drop.

The blue-chip NSE Nifty 50 index fell 0.75% to 21,293.45 points and the S&P BSE Sensex was down 0.81% at 70,482.89, as of 11:55 a.m. IST.

Ten of the 13 major sectors logged losses, with the IT index sliding 1.5%.

Tech Mahindra shed 5.7% and was the top Nifty 50 loser after it posted a smaller-than-expected quarterly profit due to weak client spending.

"The near-term weakness in IT is likely to persist. It will take at least two to three quarters for revival in client spending and earnings growth in the sector," said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management.

Financial services, the heaviest weighted among the major sectors, dropped 1%. They have tumbled 6.2% since HDFC Bank reported disappointing margins last week.

In the six sessions since, FIIs have sold Indian shares worth 347.66 billion rupees ($4.18 billion), which has pulled the benchmark Nifty 50 down about 3%.

"The selling pressure in financials is because of worries that the best of profitability for banks is over," Dadheech said.

"HDFC Bank's results also brought margin concerns in the sector to the fore, which has hurt sentiment and spurred FII selling."

Domestic institutional investors, however, were net buyers in five of those sessions, purchasing shares worth 181.29 billion rupees, according to exchange data.

Among individual stocks, Nifty 50 constituent Bajaj Auto rose 3.6% after the automaker beat profit expectations, helped by strong domestic demand. Bajaj Auto was the top Nifty 50 gainer.

Railtel Corporation of India jumped 10% after posting a quarterly profit that almost doubled year-on-year. ($1 = 83.1220 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)