* Profit-taking halts two-day rise, seen ranged next week
* Economic, political concerns to keep investors wary
* Reliance, banks drop; metals rise on higher price hopes
* Foreign funds net buyers of $280.9 mln over five
sessions
(Updates to close)
By Pratish Narayanan
MUMBAI, March 20 (Reuters) - Indian shares fell 0.4 percent
on Friday, led down by ICICI Bank (ICBK.BO) and Reliance
Industries (RELI.BO), as investors took profits in a market
that climbed more than 7 percent over two weeks.
Uncertainty related to India's slowing economy and
political outlook ahead of upcoming elections, along with a
drop in world markets, made traders wary ahead of the weekend
and halted a two-day rise.
Tata Steel (TISC.BO), aluminium producer Hindalco
Industries (HALC.BO) and non-ferrous metals poducer Sterlite
Industries (STRL.BO) shrugged off the broader decline and rose
on the back firmer metal prices.
The 30-share BSE index .BSESN closed down 0.39 percent at
8,966.68 points, with 17 stocks declining, after falling as
much as 1.5 percent at one stage.
The benchmark gained 2.4 percent on the week, after gaining
5.2 percent the previous week, but is down 7.1 percent this
year.
This week's rise was underpinned by foreign fund buying of
a net $280.9 million over five sessions to Thursday. It also
helped propel the rupee INR=IN to a three-week high and set
it on course for its best week in 2009.
"Global uncertainties continue to have an impact on the
economic situation here. Election worries will keep the market
volatile," Jigar Shah, senior vice president at Kim Eng
Securities, said.
India goes to the polls in April and May, with little
prospect of a single party winning a majority on its own, while
the economy is seen slowing down sharply as the global crisis
squeezes demand worldwide.
Traders said they expected the market to trade in a narrow
range over the next few weeks, with a weak bias until there was
more clarity on the political outcome.
Reliance, which has the heaviest weight in the main index,
shed 0.5 percent to 1,338.55 rupees on profit taking. Still,
the energy giant which is set to start pumping gas from its
field off India's east coast this month, gained 4.4 percent on
the week.
Private sector lender ICICI Bank fell 4.5 percent to 322.90
rupees, while government-run bigger rival State Bank of India
dropped 1.5 percent to 953.55 rupees.
The banking sector .BSEBANK fell almost 2 percent, but
ended the week up 2.1 percent.
Hindalco jumped 5.7 percent to 47.60 rupees, while Tata
Steel climbed 1.7 percent and Sterlite rose 0.4 percent.
In the broader section, advancers edged past losers 1,255
to 1,225 on relatively light volume of 251.4 million shares.
The 50-share NSE index ended little changed at
2,807.05.
Asian shares declined, with MSCI's measure of Asian markets
outside Japan .MSCIAPJ falling 1.2 percent. Japan was closed
for a holiday.
MAIN TOP 3 BY VOLUME
* Firstsource Solutions (FISO.BO) on 12.8 million shares
* Satyam Computer (SATY.BO) on 9.5 million shares
* Gujarat NRE Coke Ltd (GJNC.BO) on 8.9 million shares
STOCKS THAT MOVED
* Dr Reddy Laboratories (REDY.BO) fell 3.1 percent to
421.90 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.
[ID:nBMA002572]
* Akruti City AKRU.BO slumped 27.8 percent to 1,607.50
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 bond yields rise ahead of auction result
[IN/]
* Dollar steadies, eyes steepest weekly fall in 24 years
[FRX/]
* Oil dips to $51 on dollar, Fed plan uncertainty [O/R]
* Dollar, stocks weak on Fed debt buying plan [MKTS/GLOB]
* Wall Street set to extend losses
[.N] * For closing rates of Indian ADRs
INADR (Editing by Ranjit Gangadharan)
