Indian shares fell more than 1 per cent on Tuesday as software services exporters were hit hard after Cognizant Technology Solutions issued disappointing revenue guidance, while the sentiment also remained weak after a global market sell-off.

A sell-off on Monday that sent European shares to their lowest in more than two years and US indexes down more than 1 percent also hit the sentiment.

Domestic sentiment was hit as there were no surprises on the growth front as a government data yesterday showed that Indian economy grew 7.3 per cent in October-December quarter of 2015-16.

Deprecating rupee against the dollar also influenced the sentiment.

The 30-share BSE index Sensex ended lower by 266.44 points or 1.12 per cent at 24,020.98 and the 50-share NSE index Nifty ended down by 89.05 points or 1.21 per cent at 7,298.20.

Among BSE sectoral indices, IT plunged the most by 3.4 per cent, followed by TECk 2.98 per cent, metal 2.47 per cent and auto 1.78 per cent. Only oil & gas index was up 0.2 per cent.

Infosys Technologies ended 3.75 per cent lower while Tata Consultancy fell 3.45 per cent after Cognizant said it expects the slowest revenue growth in 14 years for 2016.

Major Sensex losers were Coal India (-4.38%), Tata Motors (-4.12%), TCS (-3.68%), Dr Reddy's (-3.61%) and Infosys (-3.46%), while the major gainers were Lupin (+4.68%), Sun Pharma (+2.17%), NTPC (+1.95%), ONGC (+1.77%) and GAIL (+1.48%).

"The last bounce from 7,200 was bought by a section of investors and now they seem to be selling at higher levels, they're getting justification from the ongoing global selloff," said Arun Kejriwal, founder, Kris Research.

"Economy seems to be bottoming out, but that will at least take one-two quarters to reflect into earnings of the companies," Kejriwal added.

Late on Monday, India had reported GDP figures that suggested the country's economic growth slowed in the last quarter of 2015, adding to pressure on Prime Minister Narendra Modi's government to expedite stalled reforms in the next session of parliament when it presents its annual budget.

A report by IFA Global said: "US stock markets closed on a negative note, with Dow Jones Industrial Average down by 177 points and S&P 500 index down by 27 points. The US equity markets fell as oil prices continue to tumble for third straight session and on rising concerns that the Federal Reserve will not raise rates in the coming months due to growth concerns. European stock markets closed in the red, with FTSE fell by 158 points and CAC fell by 134 points. The European index fell ahead of the German industrial production and on back of a complete risk-off trade around the globe with US treasury a clear beneficiary of that risk-off tone. Asian stock markets are trading negative, with Nikkei index down 836 points, while Shanghai index is trading lower by 20 points. Asian indices are trading on a negative note following weak global cues."

Brokers said sentiment remained weak in the absence of any positive trigger amid sustained capital outflows by foreign funds.

Besides, there was a weak trend in other Asian markets following overnight losses in the US following as oil prices tanked again on fears of a deepening economic slowdown

Global markets

European equities steadied on Tuesday, underpinned by some positive earnings reports and stronger energy stocks, after suffering heavy losses in the previous session on persistent concerns over the health of the region's top banks.

The pan-European FTSEurofirst 300, which slumped 3.4 per cent on Monday, was up 0.3 per cent by 0931 GMT after falling earlier in the day. The European banking index also gained 0.4 per cent after sinking 5.6 per cent a day earlier.

Asian share markets were scorched on Tuesday as stability concerns put a torch to European bank stocks and sent investors stampeding to only the safest of safe haven assets.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1 per cent, and would have been lower if not for holidays in many centres.

US stocks had dropped on Monday as concerns over global growth hit banks and other economically sensitive shares, although a late rally in energy shares left the market well above its lows of the day.

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