Nifty posts sharpest one-day fall in 2-1/2 months

MUMBAI, Sept 23 (Reuters): The Nifty posted its biggest single-day fall in about two-and-a-half months as blue-chips tracked weaker global shares on disappointment over European manufacturing data and concerns about an unemployment measure in a survey in China.
Caution also prevails ahead of the expiry of the monthly derivatives contracts on Thursday which traditionally sparks volatility in markets.
Investors were also mitigating risk after surveys showed French business activity contracted in September and Germany's manufacturing sector expanded at its slowest pace since June 2013.
Meanwhile, a private survey showed China factory activity edged up in September, but also showed unemployment falling to a 5-1/2-year low.
"The fall has been largely because of positional unwinding ahead of derivatives contract expiry. Also, investors were churning portfolios," said Deven Choksey, managing director at KR Choksey Securities.
The benchmark BSE Sensex closed 1.58 per cent lower at 26,775.69, while the broader Nifty also fell 1.58 per cent to 8,017.55.