(Updates at 10:28 a.m)

By Sethuraman N R

BENGALURU, May 30 (Reuters) -

Indian shares extended losses on Thursday, pressured by

weakness in their global peers on increasing worries that U.S.

interest rates will stay higher for longer, while investors

squared off positions due ahead of federal election results.

The NSE Nifty 50 was down 0.5% at 22,577 points,

while the S&P BSE Sensex lost 0.5% to 74,113 points, as

of 10:30 a.m. IST. The benchmark indexes saw their worst session

in nearly three weeks on Wednesday, closing down for a fourth

straight session as investors booked profits.

MSCI's broadest index of Asia-Pacific shares outside Japan

fell 1.2%, tracking the overnight drop on Wall

Street on increasing bets that global interest rates would stay

higher for longer.

"Some cooldown in the U.S. markets is putting pressure

on domestic markets," said Aishwarya Dadheech, founder and chief

investment officer at Fident Asset Management.

Other analysts said participants were booking profits and

also holding off on making big bets just ahead of election

results, votes for which are to be counted on June 4.

"The market is completely discounting the fact that the

current government will stay. But, if the government is not

going to make it to the majority, it will be completely

catastrophic for the market" Dadheech said.

Among sectors, the U.S. interest rate-sensitive IT stocks

fell 1.1%, seeing its worst intra-day percentage drop

since April 16.

The more domestic focussed small-cap and

mid-cap were down 0.8% and 0.6%, respectively.

Bank stocks rose 0.5% after S&P Global Ratings

raised its outlook on six banks to "positive."

Among individual stocks, Edelweiss Financial Services

fell 12.2% after the country's central bank barred two

of its units from acquiring financial assets or undertaking

structured transactions.

Shares of Tata Steel fell 3.6% after it reported a

falling fourth quarter profit, dragging metals index

down 1.6%.