Sensex slumps over 300 points; banks, metals fall

MUMBAI (Reuters) - Indian shares fell nearly 2 percent on Wednesday, heading towards their biggest decline in over a month, as China's stock market rout rattled investors who dumped blue-chips, including bank and commodity stocks.

The Bank Nifty shed 1.5 percent while the BSE metals index fell 3.5 percent.

Asian shares tumbled to a 1-1/2-year low as Chinese stocks extended a savage correction that has wiped off over 30 percent of Mainland China shares over the past four weeks.

"There will be news flows which will be impacting our (Indian) markets in the near future, not more than local data points, earnings season and monsoon session of the parliament," said Gaurang Shah, vice president at Geojit BNP Paribas.

 

"We may stay a little bit suppressed sub-8,200s; sub-8,300 levels (on the NSE index) could be visible," Shah said.

The Sensex was down 1.47 percent, while the Nifty fell 1.5 percent.

Yes Bank fell 5.9 percent, while Bank of Baroda was down 1.7 percent.

Tata Steel lost 3.9 percent, while Hindalco Industries fell 4.7 percent.

Tata Motors lost 5.6 percent on worries China's economic slowdown could hurt sales at unit Jaguar Land Rover.

However, oil user stocks such as Jet Airways (India) were up 2.5 percent and Indian Oil Corp rose 1.8 percent on weaker crude oil prices.

(Reporting by Karen Rebelo in Mumbai; Editing by Biju Dwarakanath)