Indian share prices slumped 1.75 percent on Tuesday amid renewed concerns about a global economic slowdown if central banks raise interest rates further, dealers said. They said selling pressure was seen in benchmark stocks, which had risen nearly 12 percent in the previous three trading days, after Wall Street fell on the prospect of higher interest rates, setting the tone for the region.
The Mumbai stock exchange 30-share Sensex fell 175.32 points to 9,822.52. Dealers said buying interest waned early in the morning, with automobile, cement and engineering stocks being the hardest hit.
"The market recovery could not be sustained. There are just no strong players to push stocks up and selling pressure was sustained on weak global market trends," said a dealer with brokerage Jamnadas Morarjee Securities.