Nifty set to post biggest percentage loss in one week

MUMBAI (Reuters) - Indian shares slumped more than 1 percent on Wednesday and headed for their biggest single-day percentage loss in a week as lingering concerns about earnings and the worsening global risk environment hit blue chips across the board.

Infosys Ltd fell as much as 4.7 percent to its lowest level since July 20, continuing to reel after India's second-largest IT software exporter warned on Monday that reduced spending from top clients was pressuring margins.

Foreign investors were seen as extending their selling spree. They have been net sellers in November, selling around $648 million worth of equity shares during the month so far.

"Index heavyweights, particularly IT and pharma, are finding strong headwinds," said Deven Choksey, managing director at KR Choksey Securities.

The Nifty was trading 1 percent lower after falling as much as 1.43 percent earlier, its biggest single-day percentage fall since Nov. 10.

The BSE Sensex was trading 1.11 percent lower after falling as much as 1.48 percent.

All sectors were trading in the red with the exception of select telecommunications stocks.

Blue-chips stocks, which have a higher share of foreign ownership, led the fall.

ICICI Bank fell 2.15 percent, Housing Development Finance Corp fell 1.35 percent, Reliance fell 0.7 percent while Martui Suzuki was down 1.6 percent.

Bucking the trend, shares in Coal India rose 0.41 percent after the Indian cabinet approved the government's plan to sell a 10 percent stake in the company.

(Reporting by Karen Rebelo in Mumbai; Editing by Anand Basu)