Equities 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 firm Larsen & Toubro led the decline, dropping 4.9 per cent to 774.85 rupees on concerns that investments on highways, airports, multiplexes and ports would slow down in a sluggish economy, traders said.Top petrochemicals maker Reliance Industries fell 1.9 per cent to 1,260.05 rupees, its lowest close since Dec. 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 140.40 rupees 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 in New Delhi confirmed the report by Fox News."The information is true," Sudip Mozumder, a spokesman for the World Bank in New Delhi, said.The 30-share BSE index closed down 2.43 per cent, or 241.60 points, at 9,686.75, with 29 components falling. It declined as much as 2.9 per cent during trade after having opened down 1.2 per cent.Traders said investors were also cautious ahead of the monthly derivatives settlement on Wednesday."Global markets downturn and futures expiry have put pressure on the markets. People are not too keen to roll over their contracts in the uncertain times," said independent investment consultant S.P. Tulsian."Ultimately, the direction for the market will come from the quarterly earnings next month," he said.The BSE index is down 54 per cent from its record high hit in January and is off 52.3 per cent so far this year, making it one of the worst performers in Asia and setting it on course to end a six-year gaining streak.The deepest global financial crisis in 80 years, slowing growth and heavy foreign fund outflows amid unprecedented volatility have battered shares this year. Foreigners have been net sellers of more than $13 billion of Indian stocks in 2008.Traders said the market may find some strength if the government unveiled another economic stimulus package."An aggressive monetary policy may be necessary if the global economic depression continues to adversely affect manufacturing," the finance ministry said on Tuesday in its mid-year review.Separately, Suresh Tendulkar, chairman of the prime minister's Economic Advisory Council, said it would be desirable to cut the central bank's two key interest rates by 100 basis points.The Indian economy expanded an annual 7.6 per cent in the September quarter, but analysts expect growth to skid to 7 per cent or below for the entire 2008/09 fiscal year as the global downturn and sluggish domestic demand hit economic activity."One should remain cautious, as there are still a lot of uncertainties, both globally and locally," brokerage India Infoline said. "Stocks may find some support as details about government's second stimulus package becomes clear."Indian policy makers have slashed rates and cut duties to shore up growth in Asia's third-largest economy, which has been slowing faster than expected due to high interest rates and the global financial crisis.Last week, the Congress party-led coalition asked parliament for 424.8 billion rupees ($8.8 billion) in extra spending for the fiscal year ending in March and the deputy chairman of India's plan panel said there may be a need for more fiscal stimulus.In the broader market, declines overwhelmed advances in the ratio of 2.4:1 on relatively moderate volume of 290.6 million shares.The broader 50-share NSE index fell 2.3 per cent to 2,968.65 points.
