Indian shares fell 2.94 percent on Thursday as investors sold on global economic concerns, even after Indias central bank cut rates by 50 basis points on Wednesday evening, dealers said. The benchmark 30-share Sensex index slid 248.57 points to 8,197.92, a more than three-year-low.
Foreign funds have sold equities worth 2.11 billion dollars so far this year after selling shares worth 3.14 billion dollars in the same period last year. Investors were not enthused by the Reserve Bank of Indias move to cut key short-term rates by 50 basis points to spur growth for the weakening economy. The Sensex opened one percent up to hit the days high of 8,535.03 but slid sharply on profit booking, dealers said.
Indias inflation rate has dipped further to just over three percent in the week to February 21 from 3.36 percent the previous week, official data showed Thursday. Shares in Indias largest private sector firm Reliance Industries fell 60.5 rupees or five percent to 1,149.1 as media reports said Indian oil firms output in January fell at its fastest pace in nearly four years, down 2.6 percent from a year earlier, on lower demand. Losers led gainers 1,686 to 699 on turnover of 34.16 billion rupees (656 million dollars).
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