Indian shares fell 2.33 percent Tuesday as European markets opened weak and investors took profits after last week's surge, dealers said. The benchmark 30-share Sensex fell 323.99 points to 13,589.23. Weak global trends saw investors locking in gains with the Sensex having risen over 70 percent, for 11 straight weeks since early March.
"Investors are taking profits from last week's gains. We expect choppiness to continue until the budget is announced," said Atul Hatwar, a dealer at Crosseas Securities. India's new finance minister Pranab Mukherjee said the budget would be presented in early July and its focus would be on spurring growth at the same time as maintaining fiscal prudence. Losers led gainers 1,454 to 1,323 on turnover of 68.93 billion rupees (1.44 billion dollars).
Bharti Airtel, fell 41 rupees or 5.05 percent to 770.4 - on top of a 5.41 percent fall Monday - on concerns about the balance sheet impact of its potential merger with South Africa's MTN group. On Monday, Bharti renewed merger talks with MTN in a deal worth at least 23 billion dollars under which the Indian company could acquire a 49-percent stake in the South African company. It would be Bharti's first major foray outside India. Tata Motors, fell 20.45 rupees or 5.91 percent to 325.5 on profit-taking.
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