New Delhi: Indian shares fell more than 1% on Tuesday afternoon as investors locked in profits after a three-day rally and taking cues from a drop in European markets.
By 1:30pm, the 30-share BSE index .BSESN was down 1.09% at 8,845.43 points, with 20 stocks declining. The 50-share NSE index .NSEI was down 0.97 percent at 2,750.20.
Markets were higher at noon but trade seesawed as resistance emerged after a three-day rally, while banking stocks extended their rise on the back of improving sentiment towards financials.
Traders said investors locked in profits in stocks such as outsourcers Tata Consultancy Services and Infosys Technologies that had climbed 12.3% and 8.9% respectively over the past five sessions.
“Uncertainty still prevails,” said Anuj Choksey, head of dealing at K R Choksey. “Profit-booking is bound to take place. We are just following mixed global cues.”
Wall Street snapped a four-day rise on Monday after American Express Co said the number of people struggling to make credit card payments grew, dampening optimism that banks could return to profit in the downturn.
But Asian markets were mostly higher, led mainly by financials.