Indian share prices fell 0.34 percent Wednesday on profit-taking by funds but phone companies rose on a government decision to raise the foreign investment limit to 74 percent, dealers said. The Bombay Stock Exchange's 30-share benchmark Sensex index fell 22.41 points or 0.34 percent to close at 6,530.06. Of the 30 sensex stocks, 12 stocks advanced and 18 declined on turnover of 23.35 billion rupees.

"The market is still in its corrective mode and this trend could continue for the next few days," said a dealer with Dalal and Broacha Stock Broking.

Phone company stocks rose after the government cleared the proposal to raise foreign direct investment levels to 74 percent from 49 percent.

State-owned Mahanagar Telephone Nigam rose 0.68 percent or 0.95 rupees to 139.85 while private phone company Sterlite Optical rose 4.21 percent or 3.25 rupees to 80.45.

Sentiment was lacklustre despite a rise in India's foreign currency rating Wednesday by Standard and Poor's. The rating rose to BB+ from BB.

India's long-term local currency rating was unchanged with a stable outlook.

The upgrade on the foreign currency reflected India's improved external position and growth prospects and was supported by strong external finances and prudent debt management, the agency said.

Sensex heavyweight Reliance Industries fell 1.61 percent or 8.75 rupees to 533.85. Infosys Technologies rose 0.14 percent or 2.95 rupees to 2,066.55.

Copyright Agence France-Presse, 2005