MUMBAI (Reuters) - India's main stock index fell for a sixth straight session on Monday, its longest stretch of losses in almost five years, weighed down by weak world markets and U.S. credit-related worries.
Investors were also disappointed as September industrial output grew at a slower-than-expected 6.4 percent from a year earlier, well below annual growth of 10.7 percent in August and missing market forecasts of 9.9 percent growth.
The 30-share BSE index ended down 0.9 percent, or 170.33 points, at 18,737.27, with 18 of the components falling. It had dropped as much as 3.03 percent in early deals.
It matched the longest falling streak since early March 2003, when it had fallen for six days in a row. The index had fallen 5.4 percent last week and is 7.4 percent off a lifetime high of 20,238.16 hit on Oct. 30.
"One reason for this fall is the global markets and the other one is foreign fund flows -- some selling, some slowdown that we have witnessed in the last one week," said Neeraj Dewan, director at Quantum Securities in New Delhi.
Technology stocks Infosys Technologies, Tata Consultancy, Wipro and Satyam Computer, and index heavyweight Reliance Industries, which together account for more than a quarter of the total weightage in the main index, led the drop.
Foreign inflows have slowed this month after the market regulator curbed the use of participatory notes used by unregistered foreigners to buy Indian shares, while the lingering credit worries in the United States have also weighed.
Data showed foreign portfolio investors have been sellers of around $300 million in the first six sessions in November, trimming their net purchase in 2007 to about $17 billion.
"All eyes will be now on the foreign fund flows. If we see positive figures then a recovery is possible. But I think the pace at which they have invested in the last few months will slow down," Dewan said.
D.D. Sharma, vice-president at local brokerage Anand Rathi Securities, said fresh investment by the foreigners could only be expected in January next year.
"I don't think foreign investors are going to inject fresh funds at this fag end of the year. We will see fresh money only in January. So we are advising to book profit," he said.
Shares in Reliance Industries, India's most-valuable firm, fell 2.2 percent to 2,676.95 rupees. The stock, which hit an all-time high of 3,235 rupees in a special trading session on Friday, had fallen more than 4 percent early on Monday.
Shares in software services firms fell as disappointing news from technology companies in the United States raised concerns that the fallout from the credit crisis was hurting demand from key customers.
Bellwether Infosys lost 3.6 percent to 1,641.95 rupees, its lowest close in almost 1-1/2 years. Sector leader Tata Consultancy fell more than 2 percent, while fourth-largest Satyam lost more than 3 percent.
But top tobacco maker ITC Ltd rose 5.3 percent to 177.85 rupees. Macquarie Securities said on Monday it had raised its 12-month target price on the stock by 12 percent to 225 rupees.
In the broader market, 1,685 losers outpaced 987 gainers on volume of 387.1 million shares.
The 50-share NSE index was down 0.81 percent at 5,617.10.
Elsewhere in the region Karachi's 100-share index rose 1.73 percent to 13,656.25, while Colombo added 0.46 percent to 2,631.43.
STOCKS THAT MOVED:
* Steel maker Ispat Industries Ltd hit a life high of 39.85 rupees before closing 8.2 percent up at 38.95 rupees after 4.44 million shares, or 0.36 percent of the equity, changed hands on the BSE in block deals at between 36.55-38.20 rupees each.
* Suryachakra Power Corp Ltd rose nearly 20 percent to a new high of 33.45 rupees after it tied up with state-run China Guodian Corp for a proposed 1,200 megawatt coal-based project in India. It also tied up coal supplies with Indonesia's Central Korporindo International Tbk for steam coal.
TOP THREE BY VOLUME
* Ispat Industries on 43.8 million shares
* Reliance Natural Resources on 21.9 million shares
* Essar Oil on 15.7 million shares
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