Sensex, Nifty fall to 1-1/2 month low

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex and Nifty edged lower after earlier hitting their lowest levels in 1-1/2 months as software services providers fell after Tata Consultancy Services' tepid comments on its outlook, while other blue-chips were hit by global risk aversion.

Oil prices touched fresh 5-1/2 year lows on Monday, spurring an emerging market selloff as demand for the safe-haven yen picked up while European stocks stabilised after their worst week since 2011.

Foreign investors sold shares worth 8.65 billion rupees on Friday, bringing their total outflow to nearly $280 million over the last four consecutive sessions of sales, regulatory data showed.

 

The 50-share Nifty has started looking oversold after falling for six out of the past seven sessions and closing below its 50-day moving average on Monday for the first time in nearly two months.

"We believe the downside is limited from the current levels in index and expect consolidation or technical rebound in the coming session prior to any further fall," said Jayant Manglik, president at Religare Securities Ltd.

The Sensex ended 0.11 percent lower at 27,319.56.

The Nifty closed down 0.05 percent at 8,219.60, closing below its 50-day moving average for the first time since Oct. 21.

Both indexes earlier declined to their lowest intraday level since Oct. 30.

Software stocks led the decliners after sector leader TCS on Friday said seasonal trends would impact its Q3 revenue.

TCS fell 3.8 percent, Tech Mahindra ended down 3.6 percent, Wipro Ltd lost 0.3 percent, Infosys ended 0.7 percent lower and HCL Technologies Ltd closed 1.8 percent down.

Metals and mining stocks fell tracking lower Chinese rebar futures and spot iron ore prices.

Tata Steel fell 0.4 percent, Jindal Steel and Power lost 2 percent, JSW Steel ended down 1.4 percent while Sesa Sterlite fell 2.8 percent.

In other blue-chips, Bharat Petroleum Corp fell 4.7 percent and Axis Bank lost 1.4 percent.

Among gainers, Oil and Natural Gas Corp rose 1.8 percent and Coal India gained 3.5 percent after Economic Times reported that disinvestments can be deferred till January.

Housing Development Finance Corp surged 5.1 percent, marking its biggest daily gain since Sept. 2013 on media reports Standard Life would increase stake in the lender's insurance unit.

(Editing by Sunil Nair)