MUMBAI: Indian shares fell 2.78 percent on Thursday, below the key 18,000-point mark, on growing concerns about rising interest rates and inflation.
The benchmark 30-share Sensex index was down as much as 506.37 points or 2.78 percent in afternoon trade, touching a low of 17, 671, 96.
Investors sold equities amid fears that India's central bank, the Reserve Bank of India, was readying another hike in interest rates to curb inflationary pressures.
New figures from the commerce ministry showed annual food inflation rising to 11.49 percent for the week ending February 12.
India's central bank, the Reserve Bank of India, has hiked interest rates seven times in less than a year in an effort to tame rising prices.
Crude oil prices have surged to their highest levels since 2008 due to unrest across the Middle East.
On Wednesday, tens of thousands of people protested in the Indian capital against surging prices, which have hit India's low-income classes.
India's leading vehicle maker Tata Motors was down 4.59 percent, or 52.5 rupees, at 1,092, while the country's largest private bank ICICI Bank was down 4.48 percent, or 45.15 percent, at 963.
Comments
Comments are closed.