Indian shares fall 6 pct as budget disappoints

MUMBAI, July 6 (Reuters) - Indian shares extended losses to 6 percent on Monday afternoon as a higher fiscal deficit set by the budget disappointed investors.

Sentiment was also weighed down by European shares that fell early to seven-week lows on worries an economic recovery may still be some way off.

Index heavyweight Reliance Industries (RELI.BO) led the index losers and was trading down 6.5 percent at 1,893.5 rupees, followed by ICICI Bank (ICBK.BO) that dropped 9.3 percent to 684.2 rupees.

By 2:50 p.m. (0920 GMT), the 30-share BSE Index <.BSESN. was down 5.99 percent at 14,020.10 points, with 28 component losing.

The 50-share NSE Index was down 6.05 percent at 4,156.75 points.

For budget details, see [ID:nSP190820] (Reporting by Janaki Krishnan)