Indian shares fall on U.S. worries

Tue Nov 28, 2006 4:49 PM IST

MUMBAI (Reuters) - Indian shares fell 1.25 percent on Tuesday, their biggest percentage fall since early October, as investors dumped technology stocks amid concerns of a slowdown in the U.S. economy, while Colombo stocks posted a record close.

India's 30-issue benchmark BSE index dropped 171.64 points to end at 13,601.95 points, its lowest close since Nov.20, with 25 stocks in the red. It had hit a record high on Monday, when it also posted its 12th record close in 19 sessions.

"This is the start of a bearish phase and the market may fall further to 13,200 or 12,950 levels," said Niranjan Singh Shekhawat, a technical analyst with HDFC Securities.

"There was a crucial support at 13,625, which has been breached, I guess aggressive traders are seen going short."

Technology firms suffered the most and pulled down the index, which is still up about 5 percent so far in November, after U.S. stocks had fallen on signs of weakness in economic activity.

http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-11-28T164356Z_01_NOOTR_RTRJONC_0_India-278068-2.xml

~snip~ A slowdown in the U.S. economy would hurt their earnings, as that market accounts for more than 60 percent of their revenues.