UPDATE 1-Indian shares falter; derivatives expiry spark record volumes

* BSE falls 0.48 pct; NSE falls 0.6 pct
* Volumes in F&O segment reach $76 bln, setting record
* Trading may turn cautious in last few days of 2012

(Adds details on derivatives expiry; tweaks headline)
By Manoj Dharra
MUMBAI, Dec 27 (Reuters) - Indian shares fell as recent
gainers such as Reliance Industries were hit by profit-booking,
while IT stocks fell due to concerns about their outlooks on a
day in which the expiry of derivatives led to record volumes in
the futures and options (F&O) segment.
Turnover in F&O on Thursday reached around 4.2 trillion
Indian rupees ($75.8 billion), an all-time high, several traders
said, as the number of contracts rolled over from the December
contracts to the January series fell.
According to data culled from traders, the more actively
traded National Stock Exchange saw around 62 percent of
contracts rolled over, marking a decrease from around 72 percent
carried over in November.
The reduced rollovers lead to higher volumes as investors
settle the contracts. Traders said the higher number of trade
settlements was likely intended to book profits in long
contracts after strong gains in domestic equities this year.
"There seems to be the lot of unwinding of the long
outstanding contract to start with new slate, resulting in the
highest turnover on Thursday," said K K Mital, head of portfolio
management at Globe Capital.
The benchmark BSE index fell 0.48 percent, or 93.66
points, to end at 19,323.80.
The broader NSE index fell 0.6 percent, or 35.50
points, to end at 5,870.10, ending below the psychological level
of 5,900 points.
Caution also prevailed with only three trading sessions left
in 2012, as the U.S. "fiscal cliff" negotiations continue, while
the strong foreign buying that has helped sustain Indian stocks
could peter out as investors close their books.
India's BSE has gained around 25 percent this year, backed
by about $24 billion in foreign buying across domestic equities.
Although expected interest rate cuts in January could
support shares, investors also remain wary about growth,
especially after the country's prime minister on Thursday called
a five-year plan for average growth of 8 percent "ambitious."

Among decliners on Thursday, Reliance Industries Ltd
fell 1.3 percent hit by profit-taking after shares
gained 4.4 percent so this month as of Wednesday, trumping a 0.2
percent fall in the NSE index.
Other shares that were hit by profit-taking included
Mahindra & Mahindra Ltd, which fell 1.5 percent, and
Hindustan Unilever Ltd, which ended down 1 percent.
Technology shares extended falls on caution ahead of their
earnings next month and uncertainty about their 2013 outlooks.
Infosys Ltd shares fell 1.2 percent, while Tata
Consultancy Services Ltd lost 0.9 percent.
However, among gainers, Tata Motors Ltd shares
gained 1 percent as hopes for a better outlook in 2013 for key
unit Jaguar Land Rover led investors to roll over their
derivatives positions, according to traders.
Clariant Chemicals India Ltd shares gained 1.5
percent after the company said SK capital will buy its textile
chemicals and paper specialties unit. Financial details were not
provided.
Kalpataru Power Transmission Ltd shares gained 2
percent after the company said in a statement it received orders
worth over 9.55 billion rupees.

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FACTORS TO WATCH
* Yen falls to two-year low on prospect of more stimulus
* Oil slips below $111 on U.S. budget worries
* Shares, euro climb as "fiscal cliff" push awaited
* Foreign institutional investor flows
* For closing rates of Indian ADRs

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($1 = 54.8550 Indian rupees)

(Editing by Rafael Nam and Sunil Nair)