Stock markets head for biggest fall in nearly a month on Greek woes

MUMBAI (Reuters) - India's stock markets fell more than 2 percent on Monday, heading for their biggest daily decline in nearly a month as Greece looked set to default on its debt repayment this week, sparking concerns about foreign selling in emerging markets.

Foreign portfolio investors have already sold shares worth 27.60 billion rupees ($431.96 million) in June so far, adding to sales worth 57.68 billion rupees in the previous month, exchange and regulatory data shows.

Greece will keep its banks closed on Monday and implement capital controls after international creditors refused to extend the country's bailout.

The euro fell almost 2 percent on Monday and European share markets looked set to eclipse big declines in Asia, as investors were spooked by the spectre of a Greek debt default.

 

"Fear on Greece is bigger than the actual problem. I think 8,000 should serve as a good support on NSE," said Deven Choksey, managing director at K R Choksey Securities.

The 30-share BSE Sensex fell 2.17 percent, while the 50-share Nifty lost 2.2 percent, heading towards their biggest decline since June 2.

Blue-chip stocks lead the declines. ICICI Bank lost 2.5 percent while HDFC Bank fell 1.9 percent.

Reliance Industries lost 1.6 percent and Sun Pharmaceutical Industries lost 2.8 percent.

Also, shares in Indian companies with exposure or units in Europe were among the top losers on the BSE.

Bharat Forge slumped 5.9 percent while Motherson Sumi Systems was down 3.9 percent.

Tech Mahindra slumped 8.1 percent after the company said seasonally weak mobility business will be a drag on April-June revenue and operating profit.

($1 = 63.8950 rupees)

(Reporting by Abhishek Vishnoi; Editing by Sunil Nair)