India’s benchmark stock-index dropped to a seven-week low as Tata Consultancy Services Ltd. (TCS) led software makers lower amid concern of a slowdown in global information technology spending.

Tata Consultancy tumbled to a five-month low after saying its third-quarter revenue from retail and manufacturing may be impacted by holidays. Infosys Ltd. (INFO) extended last week’s 6.4 percent loss, putting a gauge of technology stocks on course for a record tenth day of declines. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, headed for the lowest level since March amid falling oil prices.

The S&P BSE Sensex (SENSEX) lost 0.3 percent to 27,281.11, set for the lowest level since Oct. 29. The gauge slid 3.9 percent last week, the worst performance since March 2011, as oil’s plunge to five-year lows spurred concern that the global economic outlook is worsening. India’s biggest software-services companies get about 90 percent of sales from abroad.

“Spending on information technology has been growing at an ever-slowing pace and that should continue because of the slowdown in Europe,” Bhavin Shah, chief executive officer at Equirus Securities Pvt., told Bloomberg TV India today. “Oil has added to the uncertainty on global economic outlook.”

Tata Consultancy tumbled 3.1 percent to its lowest level since July 10. Infosys lost 1.2 percent, extending this month’s losses to 12 percent. The S&P BSE IT Index slid 1.9 percent, extending the nine-day, 9.3 percent retreat.

Gail India Ltd. (GAIL) declined 0.7 percent today to its lowest price since Aug. 13. Reliance lost 0.3 percent, an eight day of losses. Cipla Ltd. (CIPLA) dropped 1.5 percent. India VIX, a measure of protection against price swings, rose 1.2 percent to 13.92.

The CNX Nifty Index (NIFTY) on the National Stock Exchange of India Ltd. fell 0.2 percent to 8,209.4.

Fund Inflows

The Sensex has climbed 29 percent this year as foreigners bought $ 17.2 billion of shares, the second-highest amount among eight Asian markets tracked by Bloomberg. The gauge climbed to a record on Nov. 28, on optimism Prime Minister Narendra Modi’s government will speed up policy changes in the ongoing session of the parliament. The Sensex trades at 15.1 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 10.7.

“There’s an issue with valuations,” Akash Prakash, chief executive officer at Amansa Capital Pte., said in an interview to Bloomberg TV India today. “There may not be much expansion in price-earnings from here. Earnings will have to grow, which I believe will come with time.”

Government data released after trading ended on Dec. 12 showed factory output fell 4.2 percent in October from a year earlier, while consumer prices rose 4.38 percent in November, the least since the index was created in early 2012.

Data data due today may show wholesale prices increased 1.1 percent in November from a year earlier, compared with 1.77 percent in October, according to the median of 34 economist estimates in a Bloomberg survey.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net

To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Ravil Shirodkar, Phani Varahabhotla