The benchmark BSE Sensex on Wednesday fell for a consecutive session, led by metalmakers, after copper led commodities to a 12-year low.
Sesa Sterlite, the nation's biggest copper refiner, slumped to its lowest level since May, while aluminum producer Hindalco Industries tumbled the most in four months. ITC slid the most since November after a report the health ministry might ban sales of single or loose cigarettes. Hindustan Unilever rose to a record.
The Sensex lost 78.91 points, or 0.3 per cent, to close at 27,346.82. Copper and oil headed for their lowest prices since 2009, as the World Bank cut its global growth outlook, citing weak growth in Europe and China. The rout in commodities may boost the appeal of bonds versus riskier emerging-market equities, according to ETX Capital, a London-based brokerage.
The National Stock Exchange's Nifty also declined 21.85 points, or 0.26 per cent, to close at 8,277.55.
"As global growth concerns get highlighted more and more people are going to push money away from emerging markets into very boring treasuries and ultra-safe assets," Joe Rundle, the head of trading at ETX, told Bloomberg TV India. "It's almost a stampede out of commodities at the moment."
Foreigners sold $312 million of local shares so far this year, versus a net inflow of $16 billion in 2014. Indian stocks and bonds may attract about $18 billion to $20 billion in 2015, versus last year's combined inflows of $42.5 billion, according to Credit Suisse Group AG.
Sesa Sterlite plunged 8.1 per cent to its lowest since May 9, while Hindalco tumbled 6.3 per cent, the most since August 25.
