Infosys and Satyam lead fall in Sensex

Mumbai: Indian shares fell one per cent on Monday, led by outsourcing firms Infosys Technologies and Satyam Computer Services on concerns US technology spending would slow down further.

Shares in Ranbaxy Laboratories, among the best performers in the index so far this year, tumbled 10.5 per cent on concerns a US probe against the drug maker may hit sales in the market responsible for 24 per cent of its revenue.

It was the biggest single-day fall in more than seven years as it dropped to Rs475.90, its lowest close in two months.

The 30-share BSE index ended down 1.03 per cent or 139.34 points, at 13,330.51. The benchmark, which barely snapped weekly losses for seven weeks in a row last week, fell as much as 1.5 per cent during trade and is down 34.3 per cent this year.

Half its components lost ground. In the broader market, 1,579 losers led 1,009 gainers on volume of 252 million shares.

Infosys, which had lost 7.2 per cent on Friday, fell another 7.2 per cent to Rs1,556.10, its lowest close in three months. The sector index dropped 5.9 per cent.

Tata Consultancy Services dropped 3.8 per cent to Rs768.95 and No 4 Satyam fell 7.9 per cent to Rs409.25, its lowest close in five months.

Rupee

The rupee weakened, as traders bought dollars locally to arbitrage in offshore markets and cash in on the high rate differential.

The partially convertible rupee ended at 42.92/93 per dollar, off a low of 42.99 but 0.1 per cent weaker than Friday's close of 42.87/88. It hit a 15-month low of 43.50 early this month.

"There was mostly offshore-related dollar buying today, which pushed the rupee lower. But softer oil prices helped curb a sharp fall," a dealer said.