* Global growth worries weigh down investors
* Reliance, ICICI lead losses (Updates to midday)
NEW DELHI, Sept 9 - Indian shares fell more than 1 percent on Tuesday as global economic woes came back to haunt investors across Asia, a day after the market had climbed more than 3 percent.
"Whenever we see a rally, it's followed by profit-booking. And today the Asian markets are a bit soft, that's what causing this," said S.P. Tulsian, an independent investment consultant.
At 11:57 a.m. (0627 GMT), the 30-share main BSE index <.BSESN> was down 1.2 percent, or 179.32 points, at 14,765.65, with 24 components losing ground.
Heavyweights Reliance Industries <RELI.BO> and ICICI Bank <ICBK.BO>, which account for more than 23 percent of the index, led the losses.
Investors in Asia realised the U.S. takeover of mortgage giants Fannie Mae and Freddie Mac has addressed some risks stemming from the financial crisis but has not solved it. [MKTS/GLOB]
In India, economic growth has been slowing from a peak of 9 percent following a spike in interest rates to seven-year highs as inflation soared to double digits. The BSE index is down more than 27 percent this year.
The benchmark had surged 3.2 percent on Monday on hopes an approval for nuclear trade by a 45-member global cartel would spur large investment in the energy-hungry nation.
Tulsian said the market would be closely watching industrial production data on Friday.
Reliance Industries fell 1.6 percent to 2,097.90 rupees and ICICI Bank lost 2 percent to 706.50 rupees after rising 2.5 percent and 4.9 percent respectively in the previous session.
No. 2 software exporter Infosys Technologies <INFY.BO> was down 1.4 percent at 1,724.65 rupees after a newspaper said smaller rival HCL Technologies <HCLT.BO> was planning to outbid Infosys for British consultancy Axon <AXO.L>. [ID:nBOM333612].
Metals firm Sterlite Industries <STRL.BO> fell 2.5 percent to 606.80 rupees ahead of a board meeting to discuss a restructuring plan.
In the broader market, 1,297 losers were ahead of 956 gainers on volume of 89 million shares.
The 50-share NSE index <.NSEI> was down 1.06 percent at 4,434.80.
Elsewhere in the region, Karachi's 100-share index <.KSE> eased 0.19 percent to 9,278.71, while Colombo's All-share index <.CSE> was little changed at 2,395.24.
STOCKS ON THE MOVE
* Blue Bird India <BLBI.BO> was up 4.9 percent at 36.75 rupees after the stationery maker said it received an export order worth $4.4 million.
* Locomotive parts maker Stone India Ltd <STON.BO> jumped as much as 10 percent for the second consecutive session, after it said on Monday it was eyeing an acquisition in Europe.
TOP THREE BY VOLUME
* IFCI Ltd <IFCI.BO> on 5.8 million shares
* Resurgere Mines <RESU.BO> on 3.9 million shares
* Spice Communications <SPCM.BO> on 2.5 million shares
FACTORS TO WATCH * Indian rupee at near 2-year low as stocks drop [INR/] * Indian bond yields edge lower on softer oil [IN/] * FOREX-Dollar rides GSE rescue momentum, scales 1-yr peak
[FRX/] * Oil falls $1 as strong dollar counters storm fears [O/R] * US STOCKS-Wall Street soars on Fannie, Freddie bailout [.N] * For closing rates of Indian ADRs <INADR> |
