Indian shares fell for a second straight session on Thursday, dragged by financials, as rising inflation rate, prolonged trade war and street protests in Hong Kong hurt risk appetite.
Domestic markets tracked their broader Asian peers, which fell after massive street protests were reported in Hong Kong. Sentiment was also muted as hopes that United States and China will clinch a deal on the sidelines of a Group of 20 summit meeting faded.
MSCI's broadest index of Asia-Pacific shares outside Japan fell as much as 1%.
The broader Nifty was down 0.55% at 11,841 as of 0531 GMT, while the benchmark Sensex was 0.55% lower at 39,539.64.
The Nifty cut below a support at 11,867.56 and could lead to further fall up to a support at 11,722.5, technical charts showed.
"The next downside levels to be watched at 11,800-11,820 in the next few sessions," said Nagaraj Shetti – senior technical & derivative analyst at HDFC Securities.
"One may expect further weakness in Nifty in the coming sessions."
On Tuesday, India's retail inflation rate hit a seven-month high in May due to higher food prices, but stayed below the central bank's target, signalling potential interest rate cuts.
Annual retail inflation was 3.05%, up from the revised 2.99% in the previous month and above Reuters poll estimates of 3.01%.
Debt-laden Jet Airways Ltd slumped as much as 18.3% to a record low a day after the National Stock Exchange of India (NSE) said contracts of the carrier would be pulled out of trading in the Futures and Options segment.
Yes Bank Ltd was the top percentage drag on the Nifty, falling 9.6% to its lowest in nearly four years. The private-sector lender has come under pressure after Moody's placed the bank's rating under review for downgrade earlier this week.
Shares of IndusInd Bank Ltd fell for a second session and were down 5.44%.
Among gainers, Bharat Petroleum Corp Ltd rose 1.6% while Larsen & Toubro climbed 1.1% higher.