MUMBAI (Reuters) - India's stock markets fell on Tuesday, heading for their first decline in three sessions, as investors booked profits in sectors such as banks and capital goods, while sentiment was also hit after data showed exports shrank in January for a 14th straight month.
The falls contrasted with gains in most of the region, which benefitted from a combination of stabilising Chinese markets, rebounding oil prices and solid U.S. consumption data. The NSE Nifty surged 2.6 percent on Monday, its biggest single-day percentage gain in more than a year, as state-run banks recovered from recent losses, but analysts warn overall sentiment remains weak due to poor corporate earnings and caution ahead of the 2016/17 budget due on Feb. 29.
"It is largely to do with good amount of short-covering that had happened yesterday and that had propelled the rally in the market," said Deven Choksey, managing director of KR Choksey Securities.
"I doubt there was any genuine aggressive buying yesterday."
The broader Nifty fell 0.75 percent, while the benchmark BSE Sensex dropped 0.53 percent.
Data late on Monday showed India's exports fell 13.6 percent last month from a year ago on continued weak demand from Europe.
Software services exporters were among the day's losers, with Infosys
Banking stocks such as State Bank of India
Bank of Baroda
Liquor baron Vijay Mallya's UB Holdings
Jindal Steel and Power
(Reporting by Aastha Agnihotri; Editing by Subhranshu Sahu)
