Sensex heading towards three-week closing low

MUMBAI (Reuters) - The Sensex and Nifty were down on Monday, heading towards their fourth straight session of losses and the lowest close in three weeks, dragged down by technology stocks such as Infosys Ltd on earnings growth concerns, while weak cues across the region also dampened sentiment.

Asian shares slipped and Chinese stock markets erased their earlier sharp gains made after Beijing's latest stimulus steps, which still underpinned sentiment and helped limit losses.

Investors are keenly watching corporate earnings, while overseas investors are awaiting clarity on tax-related issues, analysts said.

Overseas investors sold Indian shares worth a net 6.75 billion rupees ($107.89 million) on Friday, provisional exchange data showed.

 

"Earnings expectations are anyways low and markets are losing a bit of patience. A lot of ambiguity on tax issues for overseas investors. I think there is a bit of uneasiness," said Samir Gilani, head, investment advisory at Radner Capital Advisors.

"I think we have got a fairly good chance to revisit the lows hit in March."

The Nifty fell 8.5 percent in March after hitting a record high earlier in the month.

The Sensex was down 0.77 percent at 28,223.45 and the NSE index was lower 0.71 percent at 8,544.70, heading towards their lowest close since March 31.

Technology stocks fell for the third straight session with Tata Consultancy Services down 1.5 percent, adding to its 6.7 percent fall last week after the country's largest software services exporter's January-March revenue fell short of expectations. Infosys was down 2.4 percent.

Recent outperformers such as heavyweight consumer stocks fell on profit-taking. Hindustan Unilever Ltd , which had gained 6.12 percent this month until Friday, fell 2.4 percent, while ITC Ltd declined 1.7 percent after rising 8 percent this month until Friday.

NMDC fell 3.8 percent after it cut iron ore prices by up to 20 percent.

However, Glenmark Pharmaceutical Industries gained 5 percent after it said Singapore's Temasek agreed to invest $150 million in the company.

($1 = 62.5650 rupees)

(Reporting by Indulal PM; Editing by Subhranshu Sahu)