Indian shares fell for the fifth straight day to a two-week low on Thursday, dragged down by explorers such as Oil and Natural Gas Corporation after a fall in crude oil prices, while subduded markets across the region also dampened the sentiment.
However, the losses were limited as technology stocks advanced after Cognizant Technologies forecast a pick-up in annual revenue growth, while a strong response to HDFC Bank's $1.6 billion share offering also bolstered the sentiment.
The 30-share BSE index Sensex ended the session down by 32.14 points at 28,850.97 and the 50-share NSE index Nifty fell 12 points to 8,711.70.
Barring IT, TECk and FMCG, all other BSE sectoral indices ended in the red. IT index was the star-performer and was up 2.09 per cent, followed by TECk 1.34 per cent and FMCG 0.59 per cent. On the other hand, power index fell the most by 2.8 per cent, followed by realty 2.74 per cent, consumer durables 2.25 per cent and infrastructure 2.18 per cent.
Software stocks also rose after rival Cognizant Technology Solutions forecast higher revenue growth helped by an increase in healthcare spending.
Oil explorers fell with ONGC down 3.2 per cent and Cairn India Ltd closing down 2.7 per cent after oil prices fell on Thursday, extending big losses logged in the previous session.
Lenders also fell, with ICICI Bank down 2.6 per cent, falling for the sixth straight session after its earnings fell short of some analysts' expectations, while Indian Overseas Bank fell 9.8 per cent after its bad loans surged.
Major Sensex gainers were Wipro 3.18%, Infosys 2.41%, TCS 1.51%, HDFC 1.28% and Axis Bank 1.28%, while the top five losers were Tata Power 7.48%, SSLT 4.06%, ONGC 3.38%, Hindalco 2.8% and BHEL 2.67%.
A report by SMC Investments and Advisors said: "Most of the Asian stocks declined as ECB strengthened its stance against Greek despite Chinese easing. US markets also declined amidst incessant headwinds from Europe.The Federal Reserve remains on course to raise interest rates in June thanks to sustained improvement in the US economy. Low energy prices and underlying positive fundamentals will help the US economy grow by 3 percent in 2015. Meanwhile, she expects the oil price collapse that has pushed inflation below the Fed's target rate will prove temporary. Inflation will gradually move back up to 2 per cent by the end of next year as economic activity continues to strengthen, oil prices stabilise, and inflation expectations remain anchored.''
European stocks fell early on Thursday after the European Central Bank abruptly cancelled its acceptance of Greek bonds in return for funding, shifting the burden onto the country's central bank.
At 0802 GMT, the FTSEurofirst 300 index of top European shares was down 0.5 per cent at 1,479.92 points.
Asian shares were also down.