10:00AM New York, 7:30PM Mumbai - India shares fell on weak global markets.

Market sentiment

Stocks in Mumbai fell on the weak global markets and continued jitters related to U.S. credit markets and elevated crude oil prices.

In Mumbai trading, the 30-share BSE Sensex fell 1.3% or 176.34 to 13,349.65. On the National Stock Exchange, CNX Nifty index declined 1% or 41.45 to 3,988.55.

Of the BSE traded shares, 1,417 stocks fell, 1,156 gained and 83 remained unchanged.

Trading statistics

Trading turnover on the BSE stood at 4,513 crore rupees, lower than 6,784.55 crore rupees recorded a day earlier and at 11,080 crore rupees on the NSE.

Reliance Natural Resources led the volume leaders with 2.84 crore shares on BSE followed by trading in IFCI, Reliance Petroleum, Chambal Fertilisers and Chemicals and Ispat Industries.

Reliance Capital was the most active stock on the BSE with the highest trading value of 425.08 crore rupees followed by Reliance Industries, Reliance Infrastructure, Reliance Natural Resources and Reliance Petroleum.

Left parties withdraw support to government

Prime Minister Manmohan Singh on Monday said the UPA government will complete the nuclear accord discussion with the US and expressed confidence that his government will last its full term.

Communist and other local and regional parties on Tuesday withdrew support to Prime Minister Manmohan Singh''s Congress-led UPA government citing differences over the Indo-U.S. civil nuclear cooperation agreement.

Communist Party of India General Secretary Prakash Karat said the time has come for the Left parties to walk away from the coalition in the wake of Singh''s decision to push ahead with the controversial nuclear energy deal.

The decision, however, may not threaten the four year old government the Congress managed to gain support from a regional party, the Samajwadi Party last week. Nuclear accord with the U.S. is highly controversial in India.

G-8 leaders shares PM''s oil price concern

Sharing concerns of Prime Minister Manmohan Singh over rising energy prices and the risks they pose to the global economy, G-8 leaders on Tuesday asked oil producing countries to step up output to meet the growing energy demand. A group of wealthy nations failed to tackle rising speculation in the commodities and agriculture products and did not talk about the need of conservation in rich countries.

A joint statement appears to focus on increasing supply from oil producing nations. however the U.S., Japan and European nations consume more than 50% of world crude oil production with less than 30% of population.

Prime Minister had lashed out at the international financial institutions and others for their lethargy in dealing with the current global crisis fed by oil and food prices and supported a dialogue between oil producing and consuming nations.

Crude oil prices have shot up to over $140 a barrel from $70 dollars in August 2007. Global prices of several items, including wheat, rice, corn, pulses and edible oil have risen between 50% and 100% in the one year.

The G-8 proposed holding an energy forum to focus on efficiencies and new technologies, which could allow for a dialogue between the producers and the consumers.
The draft declaration said further analysis of the real and financial factors behind the recent surge in oil and commodity prices should be carried out.