Indian shares fell 1.25 percent on Thursday, led by weak global markets and concerns that a stronger rupee could hit exporters' profits, dealers said. The benchmark 30-share Sensex index fell 213.13 points to 16,785.65. Weak global markets led to a sell-off. Fund managers were also concerned that rising fund inflows, which have strengthened the rupee against the dollar, could hurt the earnings potential of export-oriented companies.
"The concerns over rising inflows and their impact on (the rupee and) exports led to a sell-off," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services. Foreign funds have bought shares worth 15.38 billion dollars so far this year - the second highest amount ever - after selling stocks worth 11.9 billion dollars in the same period last year.
Overseas funds pumped in a record 17.23 billion dollars into India in 2007. Indian share prices are up 74 percent so far this year, bolstered by domestic and international economic data pointing to signs of economic recovery. Losers led gainers 1,682 to 1,052 on turnover of 50.57 billion rupees (1.08 billion dollars). Tata Steel, fell 9.6 rupees or 1.76 percent to 537.3 while TCS, slipped 7.1 rupees or 1.03 percent to 679.6. ICICI Bank, retreated 19.7 rupees or 2.18 percent to 885.55.
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