MUMBAI, May 21: Share prices closed 2.9 per cent lower on Tuesday on the Bombay Stock Exchange on panic selling by investors due to escalating fears of a possible all-out war between India and Pakistan, dealers said.

The 30-share BSE sensitive index shed 96.28 points to close at 3,186.53, off a day low of 3,127.87.

The forex market however remained stable, with the rupee actually gaining against the dollar, on a steady inflow of the US unit.—AFP