Mumbai: Indian shares eased 0.6% on Tuesday, a day after rallying the most in nearly 10 months, with export-focused outsourcers falling as Asian markets slipped after a firm start.
Traders said the initial euphoria was waning after a $1 trillion rescue package was cobbled by the European Union and the IMF to ward off Greece’s debt crisis from spreading elsewhere.
Longer-term concerns, however, remained over whether Greece and some other euro zone countries with large fiscal deficits will be able to smoothly carry out fiscal austerity measures.
“We need measures to curb such accidents rather than later nursing the injury,” said R. Ganesh, director of Systematix Shares.
“The way problems have shaped up from the US to Greece, it is not really the right way forward,” he said, referring to bailouts.
By 10:59am, the 30-share BSE index was down 0.59% at 17,229.09 points, with 22 of its components declining. The 50-share NSE index was down 0.6% at 5,162.05.
Software bellwether Infosys Technologies shed 0.9%, while Tata Consultancy Services and Wipro dropped 1.4% and 1.6% respectively. All three companies get more than half their revenue from exports.
The sector index was down 1.2% after rising 2.7% on Monday.
Asian markets slipped on doubts about how Greece and other debt-laden euro zone countries will reduce their budget deficits.
Leading mobile firms Bharti Airtel and Reliance Communications dropped 2.2% and 1 percent respectively as bids for one set of nationwide third-generation (3G) mobile spectrum licences in India reached $3 billion in an ongoing auction.
Energy giant Reliance Industries, which has the highest weight on the Sensex, was down 0.4 percent at Rs1,075.50.
Metals stocks such as Sterlite Industries and Hindalco dropped 2.1% and 1.9% respectively after base metal prices declined in London.
Tata Steel, the world’s eighth-largest steel maker by output, dropped 1.5%.
In the broader market, gainers led losers in a ratio of 1.1:1 on volume of 120 million shares.