Indian shares fell 1.58 percent on Friday as the market reacted to a US government decision to abandon moves to buy up billions of dollars in bad mortgage debt, dealers said. The benchmark 30-share Sensex fell 150.91 points to 9,385.42, a near three-year low. Indian markets had been closed on Thursday for a public holiday.
The markets ignored Indian inflation data, which unexpectedly fell into single digits to 8.98 percent for the week to November 1, after having ratcheted up to 13-year highs. Lower inflation could pave the way for further rate cuts to spur the economy, analysts say.
On Wednesday, figures showed industrial production accelerated by 4.8 percent in September, down from 7.0 percent in the same month a year ago, as companies reduced output in the face of slowing demand. On Friday's stock market, losers led gainers 1,594 to 594 on volume of 36.74 billion rupees (742 million dollars).
Overseas funds have been net sellers of Indian stocks for the year, having sold more than 12.5 billion dollars, official data showed. Tata Motors fell 12.7 rupees or 8.49 percent to 136.95 while Tata Steel fell 11.85 rupees or 6.4 rupees to 173.25. Larsen and Toubro fell 36.1 rupees or 4.36 percent to 791.5.