BENGALURU, June 4 (Reuters) - Indian shares fell 3% on Tuesday as analysts said early vote-counting trends showing Prime Minister Narendra Modi's Bharatiya Janata Party-led alliance's lead was below expectations and the extent of the victory was not clear.

The NSE Nifty 50 index was down 2.9% 22,589 as of 9:42 a.m IST, and the S&P BSE Sensex fell 2.8% to 74,277.

The indexes fell as much as 3.7%, erasing all gains made in the previous session after exit polls projected that the BJP-led alliance will likely get a two-thirds majority in the lower house.

The volatility index jumped to its highest since Feb. 2022 at 26.32.

TV channels showed the ruling National Democratic Alliance was ahead in more than 300 seats. 272 seats is the minimum needed for a simple majority in the 543-member lower house of parliament.

"The leads for the NDA is much lower than what the market could be comfortable with. It's very early and markets will remain will volatile depending on how the numbers change every minute," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

All sectors were in the red, with bank stocks down nearly 3%, infrastructure stocks down 4% and oil and gas stocks down 5.1%.

Adani Enterprises and Adani Ports were top losers in Nifty 50 index, falling 9% and 8%, respectively. (Reporting by Sethuraman NR in Bengaluru; Editing by Varun H K)