Indian shares closed down 1.88 percent on Tuesday as investor sentiment was hit by data showing India's industrial output grew by just 5.4 percent in June, dealers said. The benchmark 30-share Sensex index fell 291.79 points to 15,212.13, snapping a five-day rally.
Following the data, "investors locked in gains after a small recovery," said a fund manager at Sahara mutual fund, adding that "there is still uncertainty over whether the turmoil in the US is over." The Sensex had risen 6.35 percent in the five days to Monday.
The latest official data showed that India's industrial production had slowed to 5.4 percent in June, hit by rising inflation, high input costs and monetary tightening. In Tuesday's trade, losers led gainers 1,556 to 1,100 on volume of 57.61 billion rupees (1.35 billion dollars).
Trent, the retail arm of the leading Indian Tata conglomerate, rose 49.6 rupees or 9.99 percent to 545.85, after Tesco, the biggest British retailer, said on Tuesday it planned to open wholesale grocery stores in India that will supply goods to hypermarkets owned by the Tata Group. The world's sixth-largest steelmaker Tata Steel fell 36.8 rupees or 5.71 percent to 607.95 while India's second largest firm Infosys Technologies fell 66.4 rupees or 3.98 percent to 1,603.7 rupees.