Indian stocks fall in wake of terror attacks

MUMBAI: India's stock market fell sharply Monday, reversing early gains, amid uncertainty over the political and economic outlook after terrorist attacks killed more than 180 people in the country's financial capital.Also weighing on investors were fresh signs that economic downturns in the U.S. and Europe, both major export markets, were weakening demand for Indian-made goods.The Bombay Stock Exchange Sensitive Index, or Sensex, closed down 252.85 points, or about 2.8 per cent, at 8,839.87 on light volume after opening higher. The index rose 0.7 per cent on Friday after being shut on Friday.While the attacks could keep tourists and foreign investors away, at least in the short term, analysts attributed Monday's declines to a temporary hit to sentiment rather than a loss of confidence about India's economic prospects."There's nobody interested in the market right at this moment," said Gul Teckchandani, a Mumbai-based investment analyst. "Everybody is glued to the television as to what the politicians are going to do in improving security in the city and how they plan to tackle problems going forward."Don't forget, people involved in the market have lost friends and family," he added. "It is playing on our minds, there is discomfort."Adding to the unease, government data showed Monday the country's exports fell 12.1 per cent last month compared to a year ago, further evidence that the global slowdown was taking a toll on India's economy.Shares of Maruti Suzuki India Ltd., the nation's largest car company, tumbled 8.7 per cent after it reported a sharp drop in sales last month. It dragged down other automakers along the way, with Tata Motors Ltd. and Mahindra & Mahindra Ltd. losing 3.1 per cent each.Banks were also lower as some investors lost hope that the central bank would cut interest rates further anytime soon.The decline came as Indian Prime Minister Manmohan Singh took charge of the finance ministry. He replaced the current top finance official, who in turn replaced a chief security official, who resigned over the attacks.