Surging COVID-19 infections have threatened to disrupt a nascent economic recovery in India and its main stock indexes have retreated from February's all-time highs. Total cases in the country jumped by another daily record on Friday.

Still, analysts believe that the impact on the market may be limited as a nationwide shutdown of the kind seen last year is not expected.

The NSE Nifty 50 index closed 0.26% lower at 14,834.85, while the S&P BSE Sensex ended down 0.31% at 49,591.32. The indexes fell after three straight days of gains.

Reliance and ICICI Bank -- each down more than 1% -- were the biggest two drags on the Nifty 50.

Hindustan Unilever gained 2.7% and was the biggest boost to the Nifty 50. Tata Consumer rose 1.4%. Retailers are stocking up on supplies of consumer goods as some states imposed curfews to counter a rise in COVID-19 cases.

State-run lenders ended 2.1% higher. These stocks have gained 25% this year amid reports that some government-owned banks could be privatised.

Pharmaceutical stocks also jumped, closing 3% higher. The gains came amid expectations that Indian drugmakers could see higher sales of medicines used to treat COVID-19. Cadila Healthcare surged 9%.

(Reporting by Sachin Ravikumar in Bengaluru; editing by Uttaresh.V)