Indian share prices plunged almost two percent Wednesday as funds sold shares on a growing perception that interest rate hikes by the US Federal Reserve may slow world economic growth, dealers said.
The Mumbai stock exchange's 30-share Sensex fell 151.19 points or 1.86 percent to close at 7,971.06. Turnover was moderate at 37.15 billion rupees (848 million dollars) as 2,204 stocks declined and 237 gained.
"The market fell largely due to regional weakness triggered by rate concerns in the United States and a slowdown in foreign fund buying," said Hemen Kapadia, partner at investment advisory firm, Morpheus Inc.
He said the market was likely to fall further in the next few days. "We expect a fall of another 150 to 200 points in the Sensex."
"Foreign funds have been selling stocks in the last few days and repatriating dollars out of the system which is making the rupee fall," a foreign exchange dealer said.
Wipro, the country's third largest software exporter, fell 4.60 rupees or 1.23 percent to 368.70 despite the company posting a 16 percent jump in net profit for the second-quarter ended September 30.
Net profit for the three months to September rose to 4.8 billion rupees (106.6 million dollars) from 4.1 billion rupees a year ago while revenues jumped 27 percent to 25.1 billion rupees.
Other technology shares also fell. Infosys Technologies, the company's second largest software exporter, ended down 31.15 rupees or 1.23 percent to 2,499.75.
Hero Honda, fell 28.80 rupees or 4.02 percent to 687.75 while generic drug maker Cipla, fell 14.05 rupees or 2.54 percent to 382.35.