Indian share prices closed down 2.5 percent to below the psychologically key 10,000-point level on Tuesday amid fears of higher global interest rates and further fund sell-offs, dealers said.
They said investors were spooked by comments from US Federal Reserve chairman Ben Bernanke, who warned that the central bank would take action if needed to keep a lid on inflation even as the economy slows.
The Bombay Stock Exchange 30-share benchmark Sensex index closed down 256.16 points at 9,957.32. The Sensex last closed below 10,000 on February 17. The Sensex plunged by as much as 3.2 percent at the opening, then recouped its losses to trade flat but later fell again on profit-taking.
"The market just does not have legs and is slipping more in the absence of strong buyers. We expect a further bleeding of 500 to 600 points before recovery sets in," said Krishna Kumar Karwa, managing director at Emkay Share and Stock Brokers Ltd.
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