Indian shares slumped 1.5 per cent on Wednesday and clocked their biggest single-day percentage loss in a week as lingering concerns about earnings and the worsening global risk environment hit blue chips across the board.

The Sensex lost 382 points or 1.48 per cent to finish at 25,482.52. Similarly, the NSE Nifty lost 105.75 points or 1.35 per cent to end at 7,731.80.

On the Nifty, 11 stocks advanced and 39 declined.

Infosys Ltd fell 3.87 per cent to its lowest level since July 20, continuing to reel after India's second-largest IT software exporter warned on Monday that reduced spending from top clients was pressuring margins. The stock finished at Rs 1,020.45.

Hindalco was the top Nifty loser. It ended down 5.44 per cent to Rs 76.45.

Tata Steel (-3.77% at Rs 225.70), PNB (-3.73%, Rs 135.60) and Vedanta (-3.2% at Rs 89.10) were the other Nifty losers.

Foreign investors were seen as extending their selling spree. They have been net sellers in November, selling around $648 million worth of equity shares during the month so far.

"Index heavyweights, particularly IT and pharma, are finding strong headwinds," said Deven Choksey, managing director at KR Choksey Securities.

All sectors ended in the red with the exception of select telecommunications stocks.

Blue-chips stocks, which have a higher share of foreign ownership, led the fall.

ICICI Bank fell 2.7 per cent, Housing Development Finance Corp fell 1.9 per cent, Reliance fell 1.8 per cent while Martui Suzuki tumbled 2.06 per cent.

Bucking the trend, shares in Coal India rose 0.5 per cent after the Cabinet approved the government's plan to sell a 10 per cent stake in the company.

Idea Cellular was the top Nifty gainer. It gained 3.4 per cent to end at Rs 135.40. Asian Paints, GAIL, BPCL were the other prominent gainers.

Volatility rose 2.62 per cent with the India Vix quoting at 17.41.

Market players turned circumspect in the wake of terrorist threats to various locations across Europe.

The Nifty opened 15 points down at 7,823 while the Sensex opened 26 points down at 25,838.

The index had risen 253.94 points in the last two days.

A report by SMC Global said "Asian share markets were cautious today as another bomb scare in Europe days after the deadly Paris attacks left investors in a contemplative mood, giving a boost to safe-haven US bonds and the dollar. US stocks gave up earlier gains to end little changed Tuesday, as falling oil prices overshadowed strong earnings from giant retailers Wal-Mart Stores and Home Depot Inc. US industrial production dipped by 0.2 per cent in October, matching the decrease seen in September. The drop surprised economists, who had expected production to inch up by 0.1 per cent. The unexpected decrease in production was partly due to a continued drop in mining output, which fell by 1.5 per cent in October after tumbling by 2.4 per cent in September."

Global stocks

An index of Asian shares fell on Wednesday as copper prices tumbled and another bomb scare in Europe and gunfire in the French capital hurt risk appetite, while bets that the Federal Reserve remains on track for a rate hike underpinned the dollar. Read more

European shares fell on Wednesday, retreating back from solid gains made in the previous session, as a new fall in the price of copper caused mining stocks to lose ground.

There appeared to be limited market reaction to news that French authorities had killed two suspects after last week's attacks in Paris which killed more than 120 people. European travel and leisure stocks lost ground but were in line with the overall European market.

The pan-European FTSEurofirst 300 index, which had risen 2.6 per cent in the previous session, fell 0.7 percent while the euro zone's blue-chip Euro STOXX 50 index declined by 0.8 percent.

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