Indian share prices closed 1.83 percent lower on Wednesday, tracking weak Asian and US markets, as oil prices rose due to escalating tensions in Iran, dealers said. They said investors also unwound positions ahead of the monthly stock futures contract expiry on Thursday.
The 30-share Mumbai stock exchange Sensex index fell 239.98 points to close below the key 13,000 points level at 12,884.34. It has fallen by 3.18 percent in three trading days.
Dealers said the markets could weaken further as investors fear that India's central bank could raise rates next month after India's inflation rate held steady at 6.46 percent last Friday. "Global factors saw the markets open weak and investors squared positions ahead of the derivatives contract expiry," said a dealer with brokerage Prabhudas Lilladher.