MUMBAI: Indian shares fell 2.5 per cent to their lowest level in more than two years after heavy selling by funds in banking, metals and software stocks, analysts and traders said. “There has been unwinding in bank stocks and futures. Investors had built positions in hopes of a softening in interest rates but have been disappointed,” said Hitash Dang, vice president for institutional sales at Jaypee Capital.

At 3:16 p.m. (0946 GMT), the main 30-share BSE index was down 2.1 per cent at 15,513.43, but had fallen to  15,425.20 earlier, its lowest level since November, 2009.The broader 50-share NSE index was down 2.1 per cent to 4,647.35.