Indian shares closed down 2.91 percent on Tuesday on weak European markets and the absence of an economic stimulus package in the government's pre-election mini-budget, dealers said. The benchmark 30-share Sensex index fell 270.45 points to 9,035, its second straight day of losses.
"Weak global trends and a lack of an economic stimulus from the government (Monday) has weakened investor sentiment further," said Hiten Mehta, a fund manager with Fortune Financial Services. Dealers said weak US futures markets trends also led to a sell-off from funds in late afternoon trade.
Losers led gainers 1,722 to 682 on turnover of 23.84 billion rupees (496 million dollars). India's largest private sector firm Reliance Industries fell 51.45 rupees or 2.9 percent to 1,267.6 as the government did not re-introduce an anticipated income tax holiday for natural gas producers in the mini-budget on Monday.
The world's sixth largest steel maker Tata Steel fell 12.4 rupees or 6.74 percent to 171.65 on media reports that the firm may face liquidity concerns. India's top property firm DLF fell 8.1 rupees or 5.19 percent to 147.85 in the absence of any tax relief for the housing sector in the mini-budget.
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