Indian share prices fell sharply on Monday as overseas funds and retail investors booked profits in Sensex heavyweights but domestic funds bought selectively into mid-sized companies, dealers said. They said the fall was the sharpest for the Sensex since it plunged 3.3 percent on April 14, 2005.
The benchmark Mumbai stock exchange's 30-share Sensex index closed 147.83 points down or 1.91 percent to 7,606.17.
Trading volume totalled 33.71 billion rupees (774 million dollars) with 1,020 shares gaining and 1,528 shares declining.
With life returning to normal in monsoon-lashed Mumbai, overseas funds commenced selling in Sensex heavyweights, dealers said.
The Sensex has risen more than 15 percent in the past eight weeks.
"Some amount of correction was required at these levels.
The advance/decline ratios do not suggest cause for concern and we expect this correction to last for a few trading sessions," said Naresh Garg of Sahara Mutual Fund.
"The undertone and outlook for the markets is still strong."
The selling pressure was seen in refinery, automobile, infotech and pharmaceutical stocks.
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