Shares fell on Thursday, hurt by losses in metal stocks, as worries about the economic impact from the coronavirus epidemic in China continued to weigh on sentiment ahead of the release of the budget on Saturday.

Stocks in broader Asian markets also slipped while safe-haven assets gold and bonds were in demand as the total number of confirmed deaths from the coronavirus in China climbed to 170 as of late Wednesday and number of infected patients rose to 7,711.

NSE Nifty 50 index .NSEI was down 0.41% at 12,079.35 by 0408 GMT, while the S&P BSE Sensex .BSESN fell 0.43% to 41,020.32.

"There is an expectation that the coronovirus outbreak will lead to a slowdown in China, which will lead to a slowdown in demand," said Saurabh Jain, assistant vice president at SMC Global Securities in New Delhi.

On Thursday, the Nifty metals index .NIFTYMET fell 0.84%. Tata Steel (TISC.NS), JSW Steel (JSTL.NS) and mining group Vedanta Ltd (VDAN.NS) were among the top decliners in the Nifty 50.

Metals stocks have come under pressure in recent sessions amid fears of falling demand for commodities due to the coronavirus outbreak in the world's top metals consumer China.

Shares in Interglobe Aviation Ltd (INGL.NS), the parent of India's top airline IndiGo, fell 1.5% after a majority of its shareholders voted against changing rules on stock sales.

Markets are expected to remain volatile ahead of the expiry of January derivative contracts on Thursday.

Investors are also awaiting the announcement of India's 2021/21 federal budget on Saturday.

Prime Minister Narendra Modi's government is expected to raise spending on infrastructure and cut some personal tax, to spur consumer demand and investment, government sources and economists have said.

The budget announcement comes as India faces its worst economic slowdown in a decade. Investments have failed to pick up despite cuts in corporate taxes and monetary easing by the central bank.