The Bombay Stock Exchange (BSE) building is pictured next to a traffic signal in Mumbai
By Abhishek Vishnoi
MUMBAI (Reuters) - The BSE Sensex fell nearly 4 percent on Tuesday, retreating from a 2-1/2 week closing high in the previous session, as blue chip shares slumped as fears of military tensions in the Middle East roiled global markets.
Russian radar detected two ballistic "objects" that were fired towards the eastern Mediterranean from the central part of the sea on Tuesday, state-run news agency RIA quoted the Defence Ministry as saying. The Defence Ministry declined immediate comment to Reuters.
Israel later said it had carried out a joint missile test with the United States in the area, as President Barack Obama pushed lawmakers to back his plan to attack Syria.
The Standard & Poor's reiteration of a more than one-in-three chance of a ratings downgrade for the country alongside rupee's fall past 68 to the dollar to near a record low struck last week also weighed on stocks.
The outlook remains weak as traders focus on waning hopes of a one-time diesel price hike and dwindling volumes on days of gains.
"As fiscal deficit concerns weigh, the market may remain rangebound for remaining part of 2013. Valuations are still high in the context of economic slowdown and rupee movements," said Dinesh Thakkar, chairman and managing director at Angel Broking.
The BSE Sensex fell 3.45 percent, or 651.47 points, to end at 18,234.66, losing almost the entire gains made over the last four sessions.
The broader Nifty slumped 3.77 percent, or 209.30 points, to end at 5,341.45, after earlier falling as much as 4.1 percent.
Among blue-chip shares, Reliance Industries Ltd
Among private-sector banks, Axis Bank Ltd
The NSE bank index <.NSEBANK> slumped 5.2 percent, marking its lowest close since January 2012.
Hero MotoCorp Ltd
TVS Motor Co Ltd
However, among stocks that gained, Tech Mahindra Ltd
(Editing by Sunil Nair)