Indian share prices fell 1.4 percent, snapping an eight-day run of record highs on Thursday as markets tumbled on weak overseas trends and mutual fund redemptions, dealers said.
Sentiment weakened as Asian and US markets fell after the US Federal Reserve raised benchmark interest rates for a 16th straight time Wednesday to five percent.
The benchmark 30-share Sensex index initially rose to an intraday high of 12,671.11 before plunging to close 176.97 points down at 12,435.41.
"Mutual funds saw redemption pressure after the recent sharp run-up. Sentiment was obviously impacted by the Fed rate hike, we could expect a slowdown from overseas funds," said Atul Hatwar, dealer with brokerage Crosseas Securities.
The Indian markets have risen 32.3 percent this year.
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