Indian shares fall 1.4 pct, Tata Motors slides

* Lower global markets weigh, techs drop on U.S. worries

* Tata Motors falls after suspending work at Nano plant

* Inflation due at 1230 GMT, expected at 12.44 pct
(Updates to mid-morning)

BANGALORE, Sept 4 (Reuters) - Indian shares fell more than
1 percent on Thursday, led lower by Reliance Industries Ltd
(RELI.BO), with investors wary ahead of inflation data and a
drop in overseas markets.

By 11:20 a.m. (0550 GMT), the benchmark 30-share BSE index
was down 1.39 percent, or 209.08 points, at 14,846.78,
after having opened down 1 percent and then falling as much as
1.9 percent.

All but four of the index's components lost ground.

Traders said investors wanted evidence that showed a drop
in oil prices was helping to cool inflation and reverse slowing
economic growth.

"Fundamentals haven't changed much and though oil prices
are down, there is no clarity about changes in macro economic
scenario," said Arun Kejriwal, strategist at research firm
KRIS.

Tata Motors (TAMO.BO) fell 1.9 percent to 421.70 rupees
after the company said late on Tuesday it had suspended work at
a plant where it planned to make the Nano, billed as the
world's cheapest car, following violent protests.

The top vehicle maker said it was considering alternative
sites. For related stories, see [ID:nL2202988] [ID:nBOM258065]

The market was closed on Wednesday for a local holiday.

Brokerage India Infoline said in a report inflation, due
around 6 p.m. (1230 GMT), would determine the near-term trend
of the market.

"The market is still facing several headwinds, both local
as well as global," it said.

India's annual inflation rate is expected to have inched up
in the third week of August to 12.44 percent, driven by higher
prices of some commodities and demand pressures in Asia's
third-biggest economy, a Reuters poll showed. [ID:nBOM25641]

Crude CLc1 was little changed at $109 a barrel on
Thursday, after falling by more than $6 since Friday, as
traders weighed concerns over slowing demand from major
consumer countries against further hurricane threats to the
U.S. oil sector.

Petrochemicals maker Reliance Industries, India's top
listed firm, fell 2.6 percent to 2,155.90 rupees as investors
booked gains on the counter that had risen 3.4 percent on
Tuesday.

Shares in most software firms fell on worries about slowing
economy in the United States, their biggest market. Top
exporter Tata Consultancy Services (TCS.BO) fell 1 percent to
840.20 rupees and No. 3 Wipro (WIPR.BO) lost 1.5 percent to
444.50.

In the broader market, 1,107 losers were ahead of 972
gainers on volume of 77 million shares.

The broader 50-share NSE index was down 1.65
percent at 4,429.85.

Elsewhere in the region, Karachi's 100-share index
edged down 0.1 percent at 9,228.21 and Colombo's All-Share
index .CSE rose 0.4 percent to 2,403.71.

STOCKS ON THE MOVE

* ACC Ltd (ACC.BO), in which Swiss cement-maker Holcim
(HOLN.VX) holds about 41 percent, fell 0.9 percent to 582.70
rupees after the company said its cement shipments in August
fell to 1.54 million tonnes from 1.57 million tonnes a year
earlier.

* Austral Coke & Projects Ltd (ACPL.BO) made its market
debut at 207 rupees, up 6 percent from its issue price of 196
rupees. It was later trading at 247.90 rupees.

* Miner NMDC Ltd (NMDC.BO) was up nearly 3 percent at
320.95 rupees, after it said it would invest 120 billion rupees
($2.7 billion) to build a steel plant in central India.

MAIN TOP 3 BY VOLUME

* Reliance Natural Resources (RENR.BO) on 3.7 million
shares

* IFCI (IFCI.BO) on 3.2 million shares

* Infrastructure Development Finance Co Ltd (IDFC.BO) on
2.7 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee weakens on lower stocks, cbank eyed
[INR/]
* Indian bond yields ease on subdued oil
[IN/]
* FOREX-Dollar off 8-month high vs euro, awaits ECB
[FRX/]
* Oil holds at $109 on demand concerns, storm threats
[O/R]
* GLOBAL MARKETS-Asia shares hit 2-yr low on global slowdown

fears
[MKTS/GLOB]
* Global growth worries rattle Wall St; Dow rises
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Sumeet Chatterjee; Editing by Ranjit
Gangadharan)