India's benchmark BSE index falls 0.86 per cent, heading for its biggest single day decline since Feb. 20, while the NSE is down 0.81 per cent.
Interest rate-sensitive stocks such as banks and real estate were trading sharply lower after India's wholesale price inflation hit a three-month high. Traders are bracing next for consumer inflation data after the close of markets.
However, shares in software exporters were trading higher, with IT index of the BSE gaining 2.2 per cent after Infosys posted better-than-expected earnings. Infosys shares were up 1.7 per cent, while Tata Consultancy Services and Wipro were also up 2.2 and 3.1 per cent respectively.
Shares in United Spirits Ltd gain as much as 15 percent to a record high of 2,940.80 rupees after Diageo Plc announced a tender offer to acquire up to an additional 26 percent stake in the Indian firm at 3,030 rupees a share. The offer will be launched in June.