Indian shares slid to two-week lows on Thursday and were set for a third straight day of losses, as technology stocks continued their descent and heavyweight Reliance Industries slipped, while tyre maker CEAT dropped after posting weak results.
The blue-chip NSE Nifty 50 index was down 0.59% at 17,832.1 by 0525 GMT, while the S&P BSE Sensex fell 0.69% to 59,686.86.
The indexes have fallen nearly 3% from three-month peaks hit earlier this week, as global markets weakened on rising U.S. yields and worries about a faster pace of policy tightening.
However, they are still up around 9% from lows seen in December.
"The market may correct till 17,500 after such a sharp run-up in such a short time," said Samrat Dasgupta, CEO at Esquire Capital Investment Advisors, referring to the Nifty 50 index's levels.
With IT firms reporting mostly strong numbers last week, investors would look at the current dip as a buying opportunity, Dasgupta said, adding that investors would likely stay on the sidelines as the federal budget approaches.
IT major Infosys tumbled 2.4%, dragging the Nifty IT index to its lowest in a month, after the tech-heavy Nasdaq fell into a correction territory in overnight U.S. trading. [.N]
Automaker Bajaj Auto fell as much as 1.7% after reporting a bigger-than-expected fall in profit, while CEAT plunged 7.6% after registering a quarterly loss.
ICICI Lombard General Insurance Co sank 7.4% to its lowest since Dec. 20 following flat earnings.
Non-bank lender PTC India Financial services sank as much as 19% in its biggest intraday drop in nearly seven years after saying three of its independent directors resigned citing lapses in corporate governance.
Investors are also awaiting earnings reports from Nifty 50 components Hindustan Unilever, Bajaj Finserv, and Asian Paints. Shares of the companies were down 0.7%-1.4%.