Indian share prices closed 1.54 percent lower Monday as investors sold leading index shares after recent gains triggered by strong economic growth, dealers said.
The Mumbai stock exchange's 30-share Sensex shed 138.30 points to 8,823.31 on low volume of 25.32 billion rupees (562 million dollars) as 1,432 stocks declined and 1,023 gained.
"Profit taking was expected as the Sensex was unable to close above 9,000 points last week, indicating pressure at higher levels," said a fund manager with an overseas brokerage.
India's economy grew by eight percent in the second quarter ended September 30 and analysts expect it to post similar levels in the next two quarters of the fiscal year ending March 30, 2006.
The Sensex has gained over 35 percent since January on the back of nearly nine billion dollars of foreign fund investments in Indian equities.
Leading the fall were software shares. Tata Consultancy Services, the country's largest software exporter, fell 20.25 rupees or 1.31 percent to 1,528.20 while Infosys Technologies, the second largest software exporter, fell 55.75 rupees or 1.96 percent to 2,787.25.
Motorcycle manufacturer Hero Honda slipped 25.20 rupees or 3.06 percent to 797.10.