Indian shares follows region down 3%

MUMBAI, Feb 28, 2007 (AFP) – Indian share prices fell 3.17 percent on Wednesday in line with a wave of selling that has swept global markets on fears of a US economic slowdown, dealers said. “The markets expectedly opened weak due to global weakness in a knee-jerk reaction,” said Atul Mehra, managing director of capital markets, with JM Morgan Stanley, adding bargain hunting could emerge later in the day. They said the fall was sparked by a similar sell-off across Asia, following a sharp drop in US stocks Tuesday when the Dow Jones Industrial Average ended down 3.29 percent, the worst day on Wall Street since 2001.

The benchmark Mumbai stock exchange Sensex index was down 427.89 points at 13,050.00 in early trade after falling more than 500 points at the open.