Indian shares fall 2.8pct on growth woes, techs drop

* Slowing global growth fears spook market

* Reliance Industries leads fall; techs slide on U.S.
outlook

* Markets seen choppy next week
(Updates to close)

By Sumeet Chatterjee

BANGALORE, Sept 5 (Reuters) - Indian shares fell 2.8
percent on Friday to their lowest close in more than a week, as
renewed worries about the global economy rattled markets
worldwide and frightened investors.

Traders said they expected little respite in the near term,
with the outlook for shares in export-focused information
technology companies dented by diminishing prospects for the
U.S. economy.

"The market will continue to be choppy next week in the
absence of any positive trigger," said Dipak Acharya, fund
manager at BoB Asset Management.
The main 30-share BSE index .BSESN ended down 2.79 percent,
or 415.27 points, at 14,483.83, its biggest one-day percentage
fall since Aug. 21. It fell as much as 3.1 percent during
trade. All but three of the index's components lost ground.

The benchmark lost 0.6 percent on the week, its third
weekly loss in four, and is down about 29 percent this year.

Petrochemicals maker Reliance Industries (RELI.BO) dropped
3.4 percent to 2,079.40 rupees, its lowest close in more than a
week, and No. 2 lender ICICI Bank (ICBK.BO) shed 4.3 percent
to
687.15 rupees.

The two stocks account for about 23 percent of the main
index.

Analysts said a slide in crude prices from record highs
above $147 in mid-July was a favourable factor for India that
imports 70 percent of its oil, but this was offset by global
economic concerns.

V.K. Sharma, head of research at Anagram Stock Broking,
said the fall in demand for oil was being seen as a sign of
weakening global economy.

Shares in software firms that get more than half their
revenue from the United States were among the big losers.
Infosys Technologies (INFY.BO) fell 4.3 percent to 1,713.25
rupees and Wipro (WIPR.BO) lost 4.9 percent to 426.25 rupees.

The sector index .BSEIT shed 3.5 percent.

Edelweiss Securities said it was too early to call a
softening in inflation this month as a trend because
manufactured products inflation was still on the rise.

Data released late on Thursday showed annual inflation
eased for the second consecutive week in late-August to 12.34
percent as food prices fell, but economists saw no let up in
the central bank's tight policy stance as underlying demand
pressures remained intact. [ID:nBOM174249]

Oil prices dipped below $107 on Friday, extending a near 8
percent fall this week, as traders shed commodities positions
to join a dollar rally and on signs that $100-plus prices were
crippling demand.

In the broader market, 1,632 losers outpaced 1,019 gainers
on volume of 224 million shares.

The broader 50-share NSE index .NSEI fell 2.15 percent to
4,352.30.

Elsewhere in the region, Karachi's 100-share index .KSE
rose 1.1 percent to 9,342.19 and Colombo's All-Share index
.CSE ended flat at 2,398.30.

STOCKS THAT MOVED

* State-run oil marketing firms Indian Oil (IOC.BO) rose
2.3 percent to 446.60 rupees, Hindustan Petroleum (HPCL.BO)
ended up 4.5 percent at 236.55 rupees and Bharat Petroleum
(BPCL.BO) gained 8.7 percent to 357.95 rupees after crude
slipped.

Softer crude is favourable for the refiners, which are
forced to sell fuel at state-set low prices to retail
consumers.

* Ranbaxy Laboratories (RANB.BO) fell 8.8 percent to 450.25
rupees, after the close on Thursday of an open offer launched
by Japanese drug maker Daiichi Sankyo (4568.T) to buy a further
20 percent in the company.

MAIN TOP 3 BY VOLUME

* Reliance Natural Resources (RENR.BO) on 10 million shares

* IFCI (IFCI.BO) on 5 million shares

* Chambal Fertilisers & Chemicals (CHMB.BO) on 4.6 million
shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee falls to lowest since Dec 2006
[INR/]
* Indian bond yields ease as banks build positions
[IN/]
* FOREX-Euro extends broad losses, nears 11-mo low vs
dlr[FRX/]
* Oil falls on slowing U.S. demand, dollar
[O/R]
* GLOBAL MARKETS-Growth fears hit world stocks, European FX
[MKTS/GLOB]
* US stock futures point to lower opening, data eyed
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Ranjit Gangadharan)