MUMBAI, Dec 9 (Reuters): The Nifty fell for a third consecutive day on
Tuesday, closing at a one-month low, as investors cashed out positions
tracking a selloff in Chinese markets, hurting blue-chips such as Oil
and Natural Gas Corp.
Chinese shares plunged on Tuesday, sharply reversing course from a two-week rally fuelled in part by speculation the central bank would further ease policy, with a key stock index recording its biggest fall since the depths of the global financial crisis.
Adding to the concerns, overseas investors turned net sellers, excluding the share sale by founders of Infosys Ltd on Monday. Foreign investors have invested about $16.6 billion so far this year, exchange and regulatory data showed.
"This was an expected profit-taking. Fall in Chinese markets added fuel to the fall. However, we think it's a healthy correction. It's still a buy-on-dips market," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
The benchmark BSE Sensex closed 1.15 per cent lower at 27,797.01. The broader Nifty fell 1.16 per cent to end at 8,340.70, its lowest since November 7.
Explorers took a hit. ONGC fell 4.4 per cent, its biggest since July 7 after crude prices tumbled to a five-year low. Cairn India Ltd fell 1.6 per cent.
Sesa Sterlite lost 5.2 per cent, adding to its 3.7 per cent fall in the previous session as iron ore prices hit multi-year lows.
Metal stocks continued to fall for the second straight day after disappointing Chinese trade data. Tata Steel closed down 3.4 per cent, while Hindalco Industries ended 3 per cent lower.
Banks also fell for the second straight day on profit-taking. State Bank of India closed down 2 per cent, while ICICI Bank ended 1 per cent lower.
Chinese shares plunged on Tuesday, sharply reversing course from a two-week rally fuelled in part by speculation the central bank would further ease policy, with a key stock index recording its biggest fall since the depths of the global financial crisis.
Adding to the concerns, overseas investors turned net sellers, excluding the share sale by founders of Infosys Ltd on Monday. Foreign investors have invested about $16.6 billion so far this year, exchange and regulatory data showed.
"This was an expected profit-taking. Fall in Chinese markets added fuel to the fall. However, we think it's a healthy correction. It's still a buy-on-dips market," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
The benchmark BSE Sensex closed 1.15 per cent lower at 27,797.01. The broader Nifty fell 1.16 per cent to end at 8,340.70, its lowest since November 7.
Explorers took a hit. ONGC fell 4.4 per cent, its biggest since July 7 after crude prices tumbled to a five-year low. Cairn India Ltd fell 1.6 per cent.
Sesa Sterlite lost 5.2 per cent, adding to its 3.7 per cent fall in the previous session as iron ore prices hit multi-year lows.
Metal stocks continued to fall for the second straight day after disappointing Chinese trade data. Tata Steel closed down 3.4 per cent, while Hindalco Industries ended 3 per cent lower.
Banks also fell for the second straight day on profit-taking. State Bank of India closed down 2 per cent, while ICICI Bank ended 1 per cent lower.
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