Indian shares fell for a third consecutive session on Thursday to hit more than 3-1/2 month lows, as investor sentiment remained weak over uncertainties about the outcome of the US elections next week. The BSE index fell 0.35 percent to 27,430.28, after earlier falling as much as 0.46 percent to hit its weakest since July 11.
The broader NSE index fell 0.34 percent to 8,484.95 after also hitting its lowest since July 11 earlier in the session.
US politics overshadowed the Federal Reserve's November policy meeting where it kept rates steady as expected and opened the door a little wider to a rate rise next month.
Asian shares were lower and the S&P 500 suffered its longest losing streak in five years on Wednesday, in a reflection of the worsening risk appetite.
Foreign investors have been net sellers in India for eight consecutive sessions as of Tuesday, including in a special trading session on Sunday to mark the beginning of the Hindu new year, unloading a net total of $703.8 million worth of shares during that period.
"One of the reasons for the volatility is market participants' expectations from the US elections," said Jay Shankar, Chief India Economist & Director, Religare Capital Markets, adding that the Fed's decision and commentary on Wednesday also weighed on the mood.
Financials and consumer stocks led the pullback in both the benchmark indexes.
The NSE Bank index, which fell as much as 1.5 percent on Wednesday, was trading 0.28 percent higher. Canara Bank, which fell 5.6 percent on Wednesday, gained 1 percent.
But IT shares remained subdued on worries that Republican candidate Donald Trump's victory in the US presidential election could hurt the sector. The Nifty IT index was down 0.17 percent.