New Delhi - India share markets lost more than 2 per cent on Monday as fears of a hike in retail fuel prices triggered selling by Indian funds and foreign investors. Bombay Stock Exchange's 30-share Sensex index closed at 16,063.18, losing 352.39 points or 2.15 per cent at the end of trading.
The broader 50-share Nifty of the National Stock Exchange closed at 4739.60, down 130.5 points or 2.68 per cent from the previous close.
Heavy selling was evident in the realty, banking and metal sectors.
Local media outlets said Prime Minister Manmohan Singh's comments that the government had no option but to hike fuel prices had spurred the selling.
Investors pressed sales over the uncertainty that left-wing partners of the United Progressive Alliance - which oppose fuel price hike and rising inflation - may withdraw support to the government.
"Markets are in a continuous downslide due to a combination of factors like weakening rupee, high inflation and weak IIP (Index of Industrial Production) numbers," Anil Manghnani, Director, Modern Shares & Stock Brokers told the NDTV network.
