Indian shares fell 4.81 percent on Wednesday, as investors locked in gains from early trades when prices rallied on the back of Barack Obama's US presidential election victory, dealers said. The benchmark 30-share Sensex index fell 511.11 points to 10,120.01, snapping five consecutive days of gains.
"The markets opened strong but investors booked profit. The global financial turmoil is still not over and Obama has mountains to climb," said R. Balakrishnan, executive director with Centrum Broking. The Indian stock market had risen nearly 25 percent in the past five trading days on overseas fund buying and a central bank rate cut.
On Wednesday, losers led gainers 1,565 to 1,000 on volume of 44.31 billion rupees (939 million dollars). The rupee rose against the dollar to 47.18 from 48.62, its fifth successive day of gains, and firmed against the euro to 60.89 from 61.3. The rupee, which has been under pressure for several months, has strengthened on hopes that global overseas fund flows would improve after a massive pullout by foreign investors seeking safer havens.
India's largest private sector firm Reliance Industries fell 185.75 rupees or 12.76 percent to 1,269.45 on media reports that the company had closed five of its polyester and petrochemical units in the country. Reliance, however denied the reports.
The world's largest steel maker Tata Steel fell 24.1 rupees or 10.05 percent to 215.75, after steel giant Arcelor Mittal reported a lower-than-expected 29 percent rise in net profit at 3.8 billion dollars for the third quarter ending September.
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