Mumbai: Indian shares fell 2% on Monday, tailing a drop across Asian markets and lingering concern about the health of the world economy.
Energy group Reliance Industries Ltd and financials led the losers, while Satyam Computer Services bucked the trend and rose after the fraud-tainted outsourcer kicked off a bidding process for the company.
Traders said investors were mostly cautious because of economic uncertainties and market holidays on Tuesday and Wednesday.
“With the holidays, I don’t think anyone is going to take up long positions,” R K Gupta, managing director at Taurus Mutual Fund, said.
By 11:54am, the 30-share BSE index was down 1.72% at 8,182.98 points, with 26 stocks declining, after falling as much as 2%. The 50-share NSE index was down 1.8% at 2,572.70.
Reliance Industries was down 2.3% at Rs1,144, while state-run lender State Bank of India shed 2.3% to Rs919 and private-sector ICICI Bank dropped 1.4% to Rs262.4.
Satyam Computer Services was up 13.4% at Rs47.75 after it said it was commencing a competitive bidding process to sell a 51% stake in the fraud-hit outsourcing company.
Asian stocks fell on worries about the fate of US automakers and banks. Japan’s Nikkei stock average was down 1.21%, while the Shanghai Composite Index. was down 3.2%.