Sensex, Nifty snap gaining streak; energy, public lenders drag

(Reuters) - Indian shares snapped a three-day gaining streak on Tuesday, weighed down by energy stocks such as Reliance Industries Ltd, after data showed the country's trade deficit widened in December.

Financials, led by state-run banks, also fell sharply after a spike in government bond yields sparked concerns over trading losses on banks' treasury books.

The state-run bank index fell 2.8 percent while the broader NSE index closed 0.38 percent down at 10,700.45. The benchmark BSE index ended 0.21 percent lower at 34,771.05.

Indian bonds stayed weak with the 10-year benchmark bond yield at 7.56 percent, the highest since March 16, 2016.

The rupee also weakened on global dollar strength and muted inflows of the greenback, with the unit at 64.055 to the dollar after falling to 64.11, its lowest since December 28.

(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Vyas Mohan)