Indian stocks fell as much as 5 per cent in Mumbai on Wednesday and prompted a fall in the rupee to a three-year low against the dollar on concerns over how India will finance its growing current account deficit.

Figures showing faster-than-expected economic growth of 9.3 per cent in the final January-March quarter of fiscal year 2005-06 raised expectations of further interest rate rises in July. Full-year growth in gross domestic product was revised up from 8.1 per cent to 8.4 per cent.