Indian shares post worst monthly loss in a year

* Sensex sheds 7.2 pct on Oct; 5.4 pct this week

* Sensex down all sessions this week

* Reliance Inds, Bharti fall as Q2 results fail to cheer

(Updates to close)

By Ami Shah

MUMBAI, Oct 30 (Reuters) - Indian shares fell 7.2 percent
in October and logged their biggest monthly fall in a year,
after they closed 1 percent lower on Friday as investors gave a
thumbs down to results from some key corporates such as
Reliance Industries (RELI.BO) and Bharti Airtel (BRTI.BO).

Energy giant Reliance Industries slumped 3.6 percent to
1,931.25 rupees, its lowest close in 10 weeks, after it posted
its fourth straight decline in quarterly profits.
[ID:nBOM410990]

"We believe that the refining segment will remain under
pressure in the near term, thus, impacting RIL's (Reliance
Industries) performance," Prabhudas Lilladher said in a note.

"Overhang on the ongoing battle between RIL and Reliance
Natural Resources continues to remain a concern. Hence, we
maintain 'reduce' rating on the stock," it said in a note.

Top mobile operator Bharti Airtel tumbled 6.4 percent to
292.15 rupees, as it gave a downbeat outlook due to a nasty
price war after posting its slowest pace of profit growth in at
least six years. [ID:nDEL300502]

The 30-share BSE Index .BSESN closed 0.97 percent or
156.44 points lower at 15,896.28, after rising to as much as
16,360.88 in early trade, cheered by a rise in global markets,
as data showed United States returned to economic growth.

"The whole concept of buy at dips' and sell at rise' is
being reversed," said R. K. Gupta, managing director of Taurus
Mutual Fund.

"Results from quite some companies have disappointed,
triggering the fall. People have clarity on fiscal 2010
earnings, but beyond that it's all guesswork," added Gupta.

The benchmark shed 5.4 percent in the week declining is all
sessions, and posted its highest weekly loss in more than three
and a half months, as corporate results failed to cheer and the
central bank set a hawkish tone at its quarterly policy meet.

Foreign funds have infused around $14.4 billion in Indian
equities so far this year which have led to a rise of nearly 65
percent in the benchmark.

Prime Minister Manmohan Singh said India will push forward
with reforms and needs to increase investment in rural
education, health and infrastructure to raise the economic
growth rate up to 10 percent. [ID:nDEL307483]

Earlier this week, the central bank forecast growth for
2009/10 at 6 percent with an upward bias.

Sterlite Industries (STRL.BO) rose as much as 8.3 percent
to 808 rupees, after it said its unit Sterlite Energy filed to
raise up to 51 billion rupees though an initial public offer.

The stock closed 3.4 percent higher at 771.55 rupees.

Utility Indiabulls Power Ltd (INDP.BO), which raised about
$380 million in a heavily subscribed IPO, slumped as much as 22
percent on debut and could hit investors appetite for a long
and growing IPO pipeline.

The stock closed 12.8 percent lower at 39.25 rupees.

Private lender ICICI Bank (ICBK.BO) climbed 2.4 percent to
789.60 rupees, as it posted a small but surprise rise in
quarterly profit on trading gain and lower costs that offset a
rise in bad debts. [ID:nBOM140323]

State-run explorer Oil & Natural Gas Corp (ONGC.BO) shed
2.8 percent to 1,132.70 rupees, after it reported a
lower-than-expected 5.8 percent rise in quarterly net profit.
[ID:nBOM399276]

Power producer Tata Power (TTPW.BO) plunged 4.4 percent to
1,343.20 rupees, after it said its September quarter net profit
dropped by 28 percent. [ID:nBOM176710]

In the broader market, losers outnumbered gainers in a
ratio of 1.5:1 in a relatively higher volume of 494 million
shares.

The 50-share NSE index closed 0.8 percent lower at
4,711.70.

Indian markets are shut on Monday for a public holiday.

STOCKS THAT MOVED

* Grasim (GRAS.BO) rose 2.2 percent to 2,180.40 rupees
after the firm, which makes cement, textiles and chemicals,
said its July-September net profit rose 61 percent.
[ID:nBMA006287]

* Hindustan Dorr-Oliver (HDRR.BO) closed 4.2 percent higher
at 136.65 rupees, as the civil engineering firm said its
July-September net jumped by 96 percent. [ID:nBMB008979]

* Great Eastern Shipping (GESC.BO) closed 4.9 percent lower
at 240.50 rupees, after it said its September quarter net
plunged. [ID:nBMB008959]

MAIN TOP 3 BY VOLUME

* Indiabulls Power (INDP.BO) on 103 million shares

* Unitech (UNTE.BO) on 15.1 million shares

* Suzlon (SUZL.BO) on 13.2 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar steadies from losses, risk rally stalls
[FRX/]
* Oil pauses near $80 after 3 pct rally
[O/R]
* Stocks extend gains; caution returns
[MKTS/GLOB]
* U.S. stock futures signal dip after strong rally
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Jarshad Kakkrakandy)