India's benchmark BSE index fell to a one-month closing low on Wednesday, falling for the third straight session, as metal stocks such as Hindalco Industries plunged over an investigation into the allocation of coal blocks. The BSE index closed down 0.18 percent at 28,659.17, its lowest closing level since February 11. The broader NSE index ended 0.14 percent lower at 8,699.95, marking its lowest close since February 26.
Hindalco Industries fell 5.6 percent, to its lowest level since March 27, 2014, after a court issued summons to billionaire Kumar Mangalam Birla, chairman of Aditya Birla Group to which Hindalco belongs, and former Indian Prime Minister Manmohan Singh. Broader sentiment remained weak, as Asian stocks skidded to a two-month low on continued worries about an earlier US interest rate hike, a prospect that sent the dollar to a 12-year high against the euro.
"Markets are in a mood to consolidate. Nifty is near the 8,700 support level. There are global concerns and any fall of 150 points in Nifty from the current level, will create fresh buying opportunity," said Deven Choksey, managing director, KR Choksey securities. Telecommunications stocks such as Bharti Airtel gained after operators were seen as having successfully secured most of their spectrum needs at the ongoing auction of mobile airwaves.
Metal stocks also fell on concerns over the impact of the investigations by the Central Bureau of Investigation. Tata Steel fell 1.1 percent, while Sesa Sterlite was down 1.7 percent. Other laggards also include healthcare stocks as investors booked profits in recent outperformers such as Cipla Ltd, which fell 2.1 percent. As of Tuesday, the stock had gained 16.5 percent this year.
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