Indian shares fall 1 pct, metals buck trend

* Shares halt 2-day rise on weak global cues

* Economic, political concerns weigh on sentiment

* Reliance, banks drop; metals rise on higher price hopes
(Updates to mid morning)

MUMBAI, March 20 (Reuters) - Indian shares fell more than 1
percent on Friday as investors turned wary ahead of the weekend
after a two-day rise, with a drop in regional markets and Wall
Street's fall overnight adding to the downtrend.

Worries about the slowdown in the Indian economy and the
clouded political outlook ahead of elections in April and May
also weighed on investor confidence, traders said.

Top energy firm Reliance Industries (RELI.BO) and lenders
ICICI Bank (ICBK.BO), HDFC Bank (HDBK.BO) and State Bank of
India (SBI.BO) pulled the benchmark index down.

Metal producers Tata Steel (TISC.BO), Hindalco Industries
(HALC.BO) and Sterlite Industries (STRL.BO) bucked the trend
and rose on hopes for higher metal prices.

By 11:07 a.m. (0537 GMT), the 30-share BSE index .BSESN
was down 0.88 percent at 8,922.41 points, with 22 stocks
declining, after falling as much as 1.2 percent.

The benchmark had risen almost 8 percent over the past five
trading sessions, but is down about 7 percent this year.

"In a bear market rally, there are swift changes in
sentiment. The rally was just a temporary phenomenon," Saif
Shaikh, a dealer at brokerage Way2Wealth, said.

Reliance Industries, which had jumped 12 percent over the
previous five sessions, fell 0.6 percent to 1,337 rupees on
profit taking.

ICICI Bank shed 2.9 percent to 328.35 rupees, while rival
HDFC Bank was down 0.8 percent at 823.80 rupees. Government-run
State Bank of India fell 1.7 percent to 951.80 rupees.

Tata Steel and Sterlite rose about 2 percent each, while
Hindalco climbed more than 4 percent.

In the broader section, losers marginally led advancers 901
to 840, on relatively light volume of 69.7 million shares.

The 50-share NSE index was down 0.7 percent at
2,788.45.

Asian shares were lower, with MSCI's measure of Asian
markets other than Japan .MSCIAPJ down 0.9 percent. Japan was
closed for a holiday.

MAIN TOP 3 BY VOLUME

* Satyam Computer (SATY.BO) 3.4 million shares

* JM Financial (JMSH.BO) on 2.5 million shares

* Gujarat NRE Coke Ltd (GJNC.BO) on 1.2 million shares

STOCKS THAT MOVED

* Dr Reddy Laboratories (REDY.BO) fell 3.3 percent to
421.20 rupees after the drugmaker said it would re-align its
global generics business by gradually exiting some very small
markets that contribute less than a percent to revenues.

* Akruti City AKRU.BO slumped 26 percent to 1,642 rupees
after the National Stock Exchange barred trades in the real
estate developer from Friday in the futures and options
segment. [ID:nBOM47433]

* Financial and leasing services firm JM Financial
(JMSH.BO) rose 10 percent to 22.05 rupees after 2.4 million
shares, or 0.32 percent of the equity, changed hands in a block
deal on the BSE at 20.10 rupees each.

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee set for biggest weekly gain in 2009
[INR/]
* Indian federal bond yields rise before auctions
[IN/]
* Dollar on track for worst week in 24 years
[FRX/]
* Oil pares gains after 7 pct surge, hovers around $51 [O/R]
* Dollar heads for big weekly fall; oil eases [MKTS/GLOB]
* Misgivings about Fed plan spark sell-off

[.N] * For closing rates of Indian ADRs

INADR (Reporting by Pratish Narayanan; Editing by
Ranjit Gangadharan)