Indian shares flip-flop; ICICI falls, Reliance up

* Quarterly earnings awaited for direction

* Global economic concerns keep investors wary

* Infosys down ahead of results on Friday
(Updates to afternoon)

NEW DELHI, July 9 (Reuters) - Indian shares seesawed on
Thursday as investors waited for quarterly earnings amid
renewed doubts about the prospects for a swift global economic
recovery and the outlook for fund flows.

The IMF forecast a slightly steeper 1.4 percent global
contraction in its latest outlook than in the April projection
though it said the global economy would slowly pull out from
its worst recession in six decades.

Infosys Technologies (INFY.BO), which is forecast to report
a 13 percent fall in quarterly profit from January-March, was
down 0.2 percent at 1,701.95 rupees. [ID:nBOM387414]

The outsourcing bellwether is mainly driven by exports, but
many companies that depend on the domestic market are expected
to report better results, traders said.

"There is a perception that things have improved in the
last quarter in terms of demand. So if there is any
disappointment you will see another sell-off happening," said
Neeraj Dewan, director at Quantum Securities.

By 12:42 p.m. (0712 GMT), the main 30-share BSE index
.BSESN was down 0.06 percent, or 7.76 points at 13,761.39,
with half of the components falling.

The benchmark, which dropped 2.8 percent on Wednesday, has
lost nearly 8 percent this week after the budget on Monday
disappointed investors. Still, it is up 42 percent this year
after rallying for 16 of the last 17 weeks.

However, there are concerns robust foreign fund inflows,
which had lifted the stock index by nearly half in the June
quarter, could slow down sharply and even reverse if there was
more pain for the world economy. The funds have poured in $5.8
billion so far in 2009.

"They are the ones who started the rally and are sitting on
profits. It is possible that they will book profits if
something bad happens, which has the capacity to hit the
markets by 10 to 15 percent," Dewan said.

Shares in Reliance Industries (RELI.BO) were up 1.9 percent
at 1,863.35 rupees, after falling 1.4 percent in the previous
session. The stock accounts for more than 14 percent of the
weightage in the main index.

Among financials, ICICI Bank (ICBK.BO) fell 2.7 percent to
636.75 rupees on concerns about its international units as a
global recovery would take time, while State Bank of India
(SBI.BO) rose 1.2 percent to 1,605.90 rupees.

The wholesale price index fell 1.55 percent in the 12
months to June 27, a fourth straight fall, data showed.
However, analysts and policy makers have attributed the fall
mainly to statistical base effect and not to demand
contraction.

In the broader market, 1,390 losers were ahead of 922
gainers on relatively light volume of 191 million shares.

The 50-share NSE index was up 0.04 percent at
4,080.60.

Asian stock markets remained mostly weaker, with Japan's
Nikkei Average .N225 losing more than 1 percent, while MSCI's
measure of other stocks in the region .MIAPJ0000PUS barely
moved.

STOCKS ON THE MOVE

* Educational services provider Educomp Solutions Ltd
(EDSO.BO) rose 11.5 percent to 3,835 rupees after its board
approved raising up to 6.07 billion rupees via a qualified
institutional placement.

* Moser Baer India Ltd (MOSR.BO) fell 3.1 percent to 70.95
rupees after the firm's losses for the year to March widened
from the previous year.

MAIN TOP 3 BY VOLUME

* Unitech (UNTE.BO) on 30.3 million shares

* Suzlon Energy (SUZL.BO) on 10.4 million shares

* Mahindra Satyam (SATY.BO) on 6.8 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee at 7-week low on deficit concerns
[INR/]
* Indian bond yields ease on U.S. cues; buyback eyed
[IN/]
* Yen falls from 5-mth high vs USD, BoE decision looms
[FRX/]
* Oil rises toward $61 after fall on bearish inventories
[O/R]
* Japan stocks fall after Yen surge, bonds strong
[MKTS/GLOB]
* Dow, Nasdaq squeeze out gains before Alcoa results
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Devidutta Tripathy and Swati Pandey; Editing by
Ranjit Gangadharan)