Indian share prices closed down 3.84 percent on Monday amid Asia-wide market worries that rising inflation could halt US interest rate cuts, dealers said. They said foreign funds booked profits ahead of year-end holidays after India's benchmark Sensex rose over eight percent in the past three weeks.
The benchmark 30-share Sensex fell 769.48 points or 3.84 percent to close at 19,261.35, off the day's low of 19,177.19. Dealers said the fall marked the second highest points-wise drop for the Sensex which slid as much as 4.26 percent or 853.64 points to hit an intraday low of 19,177.19 before recovering marginally towards the close.
"The markets collapsed after a sharp run-up recently as overseas funds sold stocks which had risen smartly in previous weeks," said Atul Mehra, capital markets head at brokerage J.M. Financial. Metal, property and capital goods stocks were the hardest hit.