Indian shares fell 3.79 percent on Monday as global markets reacted to more negative economic news from the United States, dealers said. The benchmark 30-share Sensex index fell 357.54 points to 9,066.7. Last Friday, US stocks tumbled after the government reported the US economy contracted in the fourth quarter at an annual rate of 3.8 percent, the sharpest fall in 26 years.
"The bears hit back strongly and triggered a major sell-off in index heavyweights, largely tracking subdued Asian markets," said a dealer with equity research firm Sharekhan. Shares of fraud-hit Satyam, however, rose 6.57 percent or 3.55 rupees to 57.6 on reports that the company may soon announce funding details to secure its future following a massive accounting fraud.
The firm could also disclose the new top executives to run the firm. Satyam has risen over 130 percent from a recent low of 24.45 on January 16. In Monday's trade, losers led gainers 1,577 to 867 on turnover of 30.26 billion rupees (617 million dollars).
Interest rate sensitive property, construction and banking stocks fell on media reports that low interest rates have failed to revive housing demand in the country. India's top property firm DLF fell 24 rupees or 13.54 percent to 153.2 after the company reported a 68.7 percent fall in third quarter net profit, at 6.7 billion rupees (136 million dollars) for the three months to December. India's largest private sector bank ICICI Bank fell 31.4 rupees or 7.54 percent to 384.9 while housing finance firm HDFC fell 113.3 rupees or 7.37 percent to 1,423.45.