Indian shares fell 2.09 percent on Tuesday, dragged down by weak European markets and a sharp sell-off by overseas funds amid fresh concerns about the global downturn, dealers said. The benchmark 30-share Sensex index fell 179.79 points to 8,427.29, a three-and-a-half-month low.
Foreign funds have sold equities worth 1.84 billion dollars so far this year after selling shares worth 2.86 billion dollars in the same period last year. Weak European markets and renewed fears about the global financial sector hit sentiment.
"There's no positive news to soothe investor nerves. The markets could correct further," said Bhaskar Kapadia, partner at brokerage firm Pyramid Securities. Shares in India's largest private sector firm Reliance Industries fell 26.1 rupees or 2.13 percent to 1,199.05, a day after it said it would buy out its subsidiary Reliance Petroleum to create a crude refining giant in the country's biggest-ever merger.
Losers led gainers 1,595 to 810 on turnover of 25.42 billion rupees (492 million dollars). Tata Power shares fell 45.65 rupees or 6.41 percent to 666.05 on fears of slower domestic economic growth while TCS slipped 14.35 rupees or 3.12 percent to 445.15 on concerns about a cut in IT spending by US-based clients. ICICI Bank shed 7.8 rupees or 2.56 percent to 296.4 while Tata Steel dropped 3.65 rupees or 2.29 percent to 155.7 on concerns about the world-wide slowdown.