Choppy Indian shares end flat; Infosys, ICICI fall

* Quarterly earnings awaited for direction

* Global economic concerns keep investors wary

* Infosys down ahead of quarterly earnings on Friday
(Updates to close)

By Devidutta Tripathy

NEW DELHI, July 9 (Reuters) - Indian shares were little
changed on Thursday in choppy trading as investors awaited
direction from quarterly earnings amid doubts about the
prospects for a swift world recovery and the outlook for fund
flows.

Export-focused outsourcer Infosys Technologies (INFY.BO),
which kicks off the earnings parade on Friday, is forecast to
report quarterly profit fell 13 percent from January-March, but
many companies that depend on the domestic market are expected
to post better results, traders said.

"We expect markets in India to react positively to the
upcoming earnings season as it is likely to lay the foundations
for a much stronger growth rate in profits in the second half
of the year," Nomura analysts said in a strategy report on
Thursday.

The main 30-share BSE index .BSESN closed 0.08 percent,
or 11.69 points, lower at 13,757.46, with half of the
components falling. It flip-flopped through the session,
dropping as much as 0.9 percent and rising 0.8 percent.

The benchmark has lost 7.7 percent this week after the
budget on Monday disappointed investors, but is up 42.6 percent
this year after rallying for 16 of the last 17 weeks.

Infosys, the country's second-largest outsourcer, fell 1.7
percent to 1,676.75 rupees. Investors will be focusing on the
outlook the company releases with the results.

Shares in Reliance Industries (RELI.BO) rose 1.3 percent to
1,852.35 rupees, contributing most to the index's gain, after
falling 1.4 percent in the previous session. The stock has the
heaviest, more than 14 percent, weightage in the main index.

Among financials, ICICI Bank (ICBK.BO) fell 2.8 percent to
636.45 rupees on concerns about its international units as a
global recovery would take time, but State Bank of India
(SBI.BO) rose 0.9 percent to 1,601.95 rupees.

There are concerns robust foreign fund inflows, which had
lifted the BSE 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 this year
after pulling out more than $13 billion in 2008, when the index
more than halved.

"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," said Neeraj Dewan, director at
Quantum Securities.

The International Monetary Fund forecast a slightly steeper
1.4 percent global contraction in its latest outlook than in
the April, though it said the global economy would slowly pull
out from its worst recession in six decades. [ID:nSP459475].

Data showed India's wholesale price index fell 1.55 percent
in the 12 months to June 27, a fourth straight fall. Analysts
and policy makers have attributed the drop mainly to
statistical base effect and not to demand contraction.
[ID:nDEL357094]

In the broader market, 1,478 losers outnumbered 1,091
gainers on moderate volume of 366 million shares.

The 50-share NSE index rose 0.05 percent to
4,080.95.

STOCKS THAT MOVED

* Educational services provider Educomp Solutions Ltd
(EDSO.BO) rose 13.4 percent to 3,902.85 rupees after its board
approved raising up to 6.07 billion rupees via a qualified
institutional placement.

* Moser Baer India Ltd (MOSR.BO) fell 4 percent to 70.35
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 57.1 million shares

* Suzlon Energy (SUZL.BO) on 20.5 million shares

* Mahindra Satyam (SATY.BO) on 11.5 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee off 8-week low as stx gain; weak dlr
[INR/]
* Indian bond yields steady; buyback results awaited
[IN/]
* Yen, dollar fall as stocks rise; BoE eyed
[FRX/]
* Oil rises above $61, snaps 6 day losing streak
[O/R]
* Alcoa earnings help lift stocks, dollar slips
[MKTS/GLOB]
* Wall St futures point to higher start after Alcoa
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Ranjit Gangadharan)