By Indulal PM
MUMBAI (Reuters) - The BSE Sensex and Nifty posted their biggest fall in 7-1/2 weeks on Monday, as IT services exporter Infosys Ltd
Recent outperformers also took a hit on a slew of worrisome global factors, including stronger-than-expected United States jobs data that raised the prospect of early U.S. rate hikes and a ratings downgrade for Italy.
Adding to the concerns, overseas investors have also started taking profits. Foreign institutional investors sold Indian shares worth 1.09 billion rupees on Friday.
"Today's fall was basically on tech stocks, especially on Infosys, and investors booked profits in banks. However, nothing fundamentally went wrong. Perhaps fundamentals are far more positive now. We expect more reforms to go through in this (parliament) session," said Deven Choksey, managing director, KR Choksey Securities.
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The benchmark BSE Sensex closed 1.19 percent lower at 28,119.40, while the broader Nifty ended down 1.17 percent at 8,438.25.
Infosys shares led the losses. The stock fell 4.8 percent, its biggest single-day fall since May 29, after some of the company's founders sold shares worth $1.1 billion.
The founders and their families sold 32.6 million shares in Infosys at a fixed price of 1,988.87 rupees each, a 4 percent discount to Friday's close.
Metals and mining stocks fell after China's imports shrank unexpectedly in November while export growth slowed, fuelling concerns the world's second-largest economy could be facing a sharper slowdown. Tata Steel
Banks also fell on profit-taking. State Bank of India closed down 1.5 percent after gaining 18.9 percent in November. ICICI Bank
Among the gainers, ITC Ltd
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(Reporting by Indulal PM; Editing by Anupama Dwivedi)