MUMBAI (Reuters) - India's stock markets fell on Tuesday, poised for their first drop after four sessions of gains, as investors were shaky just ahead of the Union Budget next week, and after a torrid session in Asia following weak oil prices.
Asian shares retreated from a seven-week high on Tuesday as the oil price rally that boosted global equity markets reversed amid worries over supply glut.
Oil prices and the stock market have moved in lockstep for much of the year as investors look at demand for energy for a bearing on global economic health.
Investors were also jittery ahead of the government's 2016/17 budget, which is due on Feb. 29, amid hopes that policymakers will deliver a fiscally responsible budget that nonetheless steers spending to key areas such as infrastructure.
"People are not wanting to punt on the market on the budget front because you don't know where you'll get stuck because of the global developments," said Vivek Mahajan, head of research, Aditya Birla Money.
The broader Nifty was down 1.43 percent at 7,130.60 points by 0756 GMT, while the benchmark BSE Sensex fell 1.45 percent to 23,443.63 points.
Overseas investors bought a total $90.51 million of Indian shares on Feb. 18 and Feb. 19. So far in 2016, they have net sold shares worth $2.38 billion.
However, concerns over valuations remained, said analysts.
"India until yesterday was the best among the emerging market space and that is what is going against India at this point of time," said Mahajan.
Nifty is valued at 17.17 times its estimated 12-month earnings, versus a multiple of 11.2 for the Thomson Reuters Emerging Markets Asia Pacific Index.
Oil retailer stocks Bharat Petroleum Corp
Power company NTPC
Mahindra CIE Automotive
(Reporting by Aastha Agnihotri; Editing by Sherry Jacob-Phillips)
