MUMBAI (Reuters) The BSE Sensex fell below 17,000 on Wednesday for the first time in two months, dropping more than 1 percent on concerns shaky global investor sentiment could hit foreign portfolio inflows.Asian shares were trading lower after European and U.S. markets fell sharply on Tuesday on increasing concerns the Greece debt crisis could spread to other weaker countries in the euro zone.The benchmark, which is down more than 3 percent so far in 2010, hit 16,858.23 in early trade, its lowest level since March 3."The market is reacting to global cues and will do so for few more days," said Jigar Shah vice-president of equity sales at brokerage Motilal Oswal. "But a steep downside from here is not likely unless things turn really bad globally."Investors are worried the euro zone crisis could hit foreign fund inflows, which are a key driver for the market. Foreign funds have pumped $6.5 billion into Indian equities so far in 2010 after a record $17.5 billion inflow in 2009.Top lender State Bank of India shed 1.2 percent, while rivals ICICI Bank and HDFC Bank dropped 2.3 percent and 2.7 percent respectively. Mortgage lender Housing Development Finance Corp was down 1.8 percent.Energy giant Reliance Industries, which has the highest weight on the Sensex, fell 1 percent to 1,010.65 rupees.Metal makers extended losses as base metal prices fell. Shanghai copper dropped to near a three-month low following a tumble in London in the previous session.Tata Steel was down 2.5 percent, while Sterlite Industries and Hindalco shed 4.8 percent and 2.3 percent respectively.In the broader market, losers were more than thrice the number of gainers on volume of 187 million shares.The 50-share NSE index was down 1.4 percent at 5,077.70.The MSCI index of Asia ex-Japan stocks was down 1.8 percent. Markets in Japan, Korea and Thailand are closed for public holiday.European and U.S. stocks closed sharply lower on Tuesday, with the Dow Jones industrial average shedding 2 percent and the pan-European FTSEurofirst 300 falling nearly 3 percent.STOCKS ON THE MOVE* State-run oil marketing companies such as Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp gained 0.6 percent-2.5 percent as oil prices eased toward $82 per barrel.These companies are forced to sell fuel products at mandated discounts.* Oil explorer Cairn India, a unit of Cairn Energy, was down 2.7 percent at 300.50 rupees as oil prices declined.MAIN TOP 3 BY VOLUME* S Kumars on 4.7 million shares* Reliance Natural Resources on 3.4 million shares* Gujarat NRE Coke on 2.2 million shares(Reporting by Ami Shah; Editing by Ranjit Gangadharan)(For more business news on Reuters Money visit http://www.reutersmoney.in)News posted by www.newsinfoline.com
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