Indian shares fell 0.64 percent on Monday, snapping a three-day winning streak, on renewed concerns the United States may slip back into recession and Europe faced a series of risks that could re-ignite its debt crisis. India's No 2 software services exporter Infosys and smaller rival Wipro, which get the bulk of their revenue from the US market, fell 2.33 percent and 3.77 percent respectively after Goldman Sachs cut its price target on the stocks.
Tata Consultancy Services, the No 1 firm in India's flagship $76 billion software services industry, however, rebounded to close 0.55 percent higher at 1,027.7 rupees. India's services sector grew at its slowest pace in more than two years in August, a survey showed, throttled by feeble expansion in new business as a faltering global economy and tight domestic monetary conditions weighed.
The main 30-share BSE index closed down 108.13 points at 16,713.33 points, with 20 of its components closing in the red. The benchmark had snapped a five-week slide and recouped 6.1 percent last week, mainly on bargain hunting. The index is one of the worst performers in the world this year, down more than 18 percent this year. The broader 50-share NSE index shed 0.45 percent to close at 5,017.2 points.
There were 1.15 gainers for every loser in the broader market, with 644.17 million shares changing hands. India's central bank might not increase its key lending rate further as it will impact growth, the Business Standard newspaper reported on Monday quoting Finance Minister Pranab Mukherjee. Foreign institutional investors purchased local shares worth $404 million so far in September, after having sold more than $2 billion in August.
Worries that continued government moves to clamp down illegal mining would curtail supplies hit Indian metal stocks. Hindalco Industries, the country's largest aluminium producer, and iron-ore miner Sesa Goa fell as much as 4 percent and 2.9 percent respectively.
Learning solutions provider Everonn Education fell 20 percent, plunging to a 52-week low as well as hitting its daily limit for the second straight session, after the company said on Friday its managing director P. Kishore was taken into judicial custody.
Energy giant Reliance Industries, which has the biggest weightage on the benchmark index, lost 2.06 percent to close at 788.85 rupees, after adding 2.9 percent on Friday. Reliance Communications, India's second largest mobile phone carrier by subscribers, bucked the trend and rose 3.9 percent after it said it would restructure its wireless business over the next 30 days.
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