Sensex sheds over 2% as Satyam slides 13%

Mumbai: Indian shares fell 2.4 per cent on Tuesday to their lowest close in more than a week, as global economic uncertainties and concerns about corporate earnings triggered a flight from risky assets.

Leading construction and engineering company Larsen and Toubro dropped 4.9 per cent to Rs774.85 on concerns that investments on highways, airports, multiplexes and ports would slow down, traders said.

Top petrochemicals maker Reliance Industries fell 1.9 per cent to Rs260.05, its lowest since December 12 and taking its losses for the year to 54.7 per cent.

Brokerage Religare Capital Markets said Reliance's refinery business was likely to be adversely impacted by the falling trend in the margins due to lower crude.

Shares in Satyam Computer, which have been sagging after a botched management move into the construction industry, fell 13.55 per cent to Rs140.40 on a media report the World Bank had barred the outsourcing firm from the bank's business.

After the market closed, a spokesman for the World Bank, New Delhi, confirmed the report by Fox News.