Nifty dives over 2 percent to near lowest in one year

REUTERS - The Nifty fell more than 2 percent on Tuesday to near its lowest in about a year after HDFC Bank lowered its base rate by a hefty 35 basis points, sparking concerns other lenders would follow suit, hurting margins in the sector.

Shares also tracked lower Asian and European markets after poor Chinese data saw fears about its economic health intensify.

The Nifty was down 2.2 percent at 2:12 p.m., not far from levels last week when the index hit its lowest since August 2014.

The Sensex was down 2.1 percent.

Both indices lost over 6.5 percent in August, their biggest monthly decline since November 2011.

 

HDFC Bank was down 2.9 percent.

(Reporting by Karen Rebelo in Mumbai; Editing by Rafael Nam)