The downward trend continued in the stock markets on Tuesday with the benchmark Sensex closing below 15,000 points level by losing nearly 177 points as selling pressure in heavyweight stocks mainly in banking, realty and metal sectors showed no signs of lessening.

India's inflation rate, which jumped to a more than three-year high last month, is a "big concern" for the government as it heads towards a general election due by May 2009, Indian Finance Secretary Subba Rao said in Spain.

While the fears of rice shortage are growing around the world and the prices of rice have been increased 41 percent las year India is reporting good news on Wheat output. India has ruled out the need to import wheat this year, as it appears poised to surpass the 15 million tons procurement target, the government had imported 1.8 million tons of wheat last year.

Pushing for reforms, the Economic Survey said inflationary impact of foreign funds flow, a slowdown in the US, an appreciating rupee and sluggish infrastructure sector were major challenges before economy.

The Bombay Stock Exchange benchmark Sensex today plummeted by 523 points, its biggest loss in the last two weeks with software and metal stocks falling on reports of contraction in US service industry.

Finance Minister of India P Chidambaram has said that a weakness in Indian stock market was a reflection of global developments, and the domestic economy continues to be strong.

The country's textile and apparel exports could fall by as much as 30 percent this fiscal owing to the sharp appreciation in rupee value vis-a-vis the US dollar.

The benchmark Sensex on Monday tumbled by 769 points on fears foreign investment will slow down in the wake of rising inflation in the US that will limit interest rate cuts.

Stock market barometer BSE Sensex today registered its biggest one-day gain of 893.58 points to settle at the third-highest level ever on buying by investors in bank counters and blue chips such as Reliance Industries.

Indian Premier Manmohan Singh said Monday that the country would sustain a high economic growth rate in the long term and promised to stay the course of economic liberalization.

Inflation touched five-year low of 3.07 per cent in India for the week ended 6th October, mainly due to decline in prices of essential items like fruits and vegetables, eggs, cereals and some manufactured goods.

Terming the Indian growth pattern as "impressive", the IMF has has said it does not foresee overheating of its economy as long as the current monetary policy is in place and its "independence is strengthened".