Indian shares closed down 3.53 percent on Wednesday, following Wall Street's plunge on renewed fears about the global banking sector as Barack Obama took charge as the 44th US president. The benchmark 30-share Sensex index slid 321.38 points to 8,779.17, its lowest level in more than a month.
"A steep fall across Asia triggered heavy selling locally," said an analyst with equity research firm Sharekhan. Shares of fraud-hit Satyam rose 3.3 percent or 0.9 rupees to 27.75 even as the market regulator Sebi said the extent of Satyam's accounting fraud could not yet be estimated.
The stock has fallen more than 85 percent since company founder B. Ramalinga Raju admitted the Hyderabad-based software services firm had falsified accounts by more than a billion dollars. In Wednesday's trade, losers led gainers 1,669 to 720 on turnover of 28.5 billion rupees (580 million dollars).
Last year, overseas funds were net sellers of Indian stocks, having sold 13.13 billion dollars in 2008. Reliance Industries fell 63 rupees or 5.33 percent to 1,119.4 rupees, a day ahead of its third quarter earnings. Wipro shed 8.1 rupees or 3.55 percent to 219.75.