Indian share prices closed 1.4 percent lower Tuesday on concern that record high prices for crude oil on international markets could stall economic growth and fuel inflation, dealers said. The Mumbai stock exchange's benchmark 30-share Sensex closed down 102.08 points at 7,049. Shares worth 28.58 billion rupees (655 million dollars) were traded, with 500 stocks closing positive and 1,989 ending down.
The fall in the Sensex was the sharpest in the past seven weeks. "The concern for the markets, with indices at record levels, is how crude (oil) prices will behave in coming days. Any further increase will trigger a sharp sell-off," said Atul Hatwar, dealer with brokerage Crosseas Securities.
Reliance Industries stock fell 2.98 percent or 19.3 rupees to 629.1 rupees on profit booking by funds. Sentiment was also affected after the company said a possible merger of the group's refinery subsidiary Indian Petrochemicals with Reliance Industries had been ruled out.
Infosys Technologies stock fell on a fund sell-off with the stock closing 1.99 percent down or 46.45 rupees at 2,291.75 rupees.