Indian shares fell on Wednesday, snapping two straight sessions of gains, on concerns the government may amend tax treaties with countries including Singapore after it agreed to tax capital gains on foreign investments from Mauritius.

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The broader NSE Nifty closed 0.49% lower at 7,848.85, after falling as much as 1.36% earlier in the session. The index rose 2% in the previous two sessions.

The benchmark BSE Sensex closed down 0.68% at 25,597.02. It fell as much as 1.4% earlier in the session.