* NSE index down 0.01 pct, BSE index flat
* Indian rupee touches record low
* Materials, energy lead
By Abinaya Vijayaraghavan
Aug 29 (Reuters) - Indian stock indexes were muted on Wednesday, following record-setting gains in the previous two sessions, as losses in IT stocks offset an advance in energy and materials shares.
The NSE index .NSEI was down 0.01 percent at 11,737.05, while the benchmark BSE index .BSESN was unchanged at 38,897.17.
The Indian rupee INR=D2 on Wednesday touched a record low of 70.4675 to the dollar, tracking weakness in Asian peers along with strong month-end dollar demand back home. NSE index has been setting successive record highs for the past two months, while the BSE index has been Asia's top performer this year even when accounting for the rupee's decline.
"The correction is nowhere close to a concern in terms of the long-term growth story. Minor corrections should not be viewed as anything serious or a reversal," said Gaurang Shah, head investment strategist, Geojit Financial Services.
Among materials stocks, copper and aluminium producer Vedanta Ltd VDAN.NS rose 3.13 percent to its highest since July 2, while agrochemicals company UPL Ltd UPLL.NS gained 3.11 percent to reach its highest in more than two months.
IT services companies Infosys Ltd INFY.NS and Tata Consultancy Services Ltd TCS.NS fell between 0.38 and 0.68 percent, while HCL Technologies Ltd HCLT.NS dropped 1.1 percent.
JSW Steel Ltd JSTL.NS jumped as much as 3.6 percent to a record high after it was set to replace drugmaker Lupin Ltd LUPN.NS in the NSE index. appliance maker TTK Prestige Ltd TTKL.NS climbed as much as 7 percent after brokerage CLSA raised its price target on the stock. National Aluminium Co Ltd NALU.NS hit its highest level in about three months as HSBC initiated coverage with a "buy" rating.