Indian shares sag

Indian shares closed down 1.31 percent on Tuesday as foreign investors sold amid fears of more steps to slow the economy with inflation at a 13-year high of 11.05 percent, dealers said. The benchmark Mumbai 30-share Sensex index fell 186.74 points to 14,106.58, the fifth straight day of losses.
Dealers said investors were waiting for the US Federal Reserve interest rate decision due Wednesday, though analysts expect rates to be kept unchanged. Earlier in the day, the Sensex hit a new intra-day low this year at 13,991.31, from its previous low for the year of 14,163.45 hit Monday.
"Global inflation and oil concerns persist. Reports of selling from large overseas funds pulled the markets down further," said Bhaskar Kapadia, partner with brokerage Pyramid Securities.