The 30-share Bombay Stock Exchange index fell more than 2 per cent, by 143 points, on Tuesday to their lowest close in two months, as weaker regional indices and year-end jitters dragged frontline stocks lower across sectors.
Across the region, Japan's Nikkei index sank 1.6 per cent -- its biggest fall in four months -- on weak economic data, while Seoul shares slipped nearly 2 per cent and Hong Kong stocks fell to their lowest close in two months.
The 30-share Bombay Stock Exchange index ended down 2.19 per cent at 6,367.86 points, its lowest close since Jan. 28. Losers beat gainers more than five to one in active trade of 199 million shares, reflecting the underlying caution.
The index is down 8.4 per cent, or 587 points, from an all-time high of 6,954.86 points struck on March 9.
The 50-issue National Stock Exchange index ended 2.25 per cent lower at 1,983.85 points.
"There is a year-end churning of portfolios, plus regional markets were very weak, and domestic funds and retail buyers are staying out of the market, so there was no buying support," said Mitesh Mehta, vice president of equity sales, LKP Shares.
The fall was also precipitated by the upcoming rollover of monthly derivatives contracts and fears that a stronger dollar will see a flight of foreign funds from emerging markets.
"But the market should start improving with greater liquidity coming in and with the first of the quarterly earnings and guidance for the next fiscal year," said Mehta.
Software services firms will kick off reporting of January-March and full-year earnings in the second week of April.
On Tuesday, investors booked profits in banks, metal makers, energy firms and tech firms, which had risen in recent sessions.
Index heavyweight Reliance Industries Ltd., the biggest private-sector refiner, fell 3.2 per cent to 548.95 rupees. It has an 11.16 per cent weightage on the Sensex.
Exploration firm Oil and Natural Gas Corp. slid 3.2 per cent to 833.70 rupees and state-run refiner Hindustan Petroleum Corp. Ltd. fell 3.4 per cent to 300.10 rupees.
Infosys Technologies Ltd., the No. 2 services exporter, which has a 12.45 per cent weightage on the index, fell 1.1 per cent to 2,166.70 rupees and Tata Consultancy Services Ltd., the top exporter, fell 1.5 per cent to 1,370.20 rupees.
Metal makers, which had risen on expectations they would raise prices, lost their shine, with No. 1 producer Steel Authority of India Ltd. falling 3.1 per cent to 62.65 rupees and Tata Iron and Steel Co., the No. 2 producer, slipping more than 4 per cent to 401.40 rupees.
Banks, which had gained on a positive sector outlook, also fell sharply, with State Bank of India, the biggest commercial bank, ending down 3.8 per cent at 640.90 rupees.
