Indian shares fell 3.25 percent on Tuesday as investor sentiment weakened, tracking global markets that have reacted to the outbreak of swine flu, dealers said. The benchmark 30-share Sensex fell 370.1 points to 11,001.75, snapping three straight days of gains.
Investors locked in profits as confidence slipped on concerns over the impact of swine flu. Banking, airline and hotel stocks fell. Political uncertainty also led to a bearish outlook, as the possibility of a fragmented coalition government grows when marathon general elections end next month. "The markets had risen smartly, we expect investors to book profit at these levels," said Suhas Samant, fund manager with local brokerage Shakekhan.
Indian shares rose nearly 40 percent in seven consecutive weeks, from 8,160 points on March 9. Losers led gainers 1,807 to 654 on volume of 42.38 billion rupees (840 million dollars). Airline stocks fell reacting to global trends on swine flu fears. One of India's largest carriers Jet Airways - which has direct flights to the US - fell 8.65 rupees or 4.3 percent to 192.5 while rival Kingfisher Airlines also slipped three rupees or 7.58 percent to 36.6.
Indian Hotels, which owns the landmark Taj Hotels chain, fell 3.5 rupees or 6.11 percent to 48.4, and Oberoi group's flagship EIH fell 3.15 rupees or 2.68 percent to 114.5. ICICI Bank fell 28.6 rupees or 6.11 percent to 439.3.