Indian shares down 0.4 pct; banks lead decline

* Stocks fall tracking the fall in Asian markets

* Banks fall, finance reforms unlikely in parliament
session
(Updates to morning)

MUMBAI, Nov 20 (Reuters) - Indian shares fell on Friday
morning, led by losses in banks and weighed down by falls in
Asian markets as investors shifted from riskier assets on
concerns over the strength of the world economy.

Top lender State Bank of India (SBI.BO: Quote, Profile, Research) down 0.9 percent
and second-ranked ICICI Bank (ICBK.BO: Quote, Profile, Research) down 1.5 percent, after
a finance ministry official said a bill to reform the insurance
sector was unlikely to be cleared during the parliament's
winter session. [ID:nBMB009119]

"There were expectations built up that the insurance
reforms will be a priority in this parliament session. Now,
that it seems unlikely, SBI and ICICI are being knocked off,"
said D. D. Sharma, senior vice-president at Anand Rathi
Securities.

"Besides, banks have run up a lot in last few months. So,
when broader market falls, the stocks that outperformed are
going to be hit the most," said Sharma.

The banking sector index is up 83 percent so far
in the year, outperforming the main index .BSESN which has
risen more than 73 percent.

At 11:22 a.m. (0552 GMT), the 30-share BSE Index was down
0.43 percent at 16,713.75, with 24 components declining.

Top software services firm Tata Consultancy (TCS.BO: Quote, Profile, Research) was
down nearly 1 percent, while rivals Infosys (INFY.BO: Quote, Profile, Research) and Wipro
(WIPR.BO: Quote, Profile, Research) shed 0.6 percent and 1.8 percent respectively.

"Just like banks, IT too is under pressure as the stocks
had performed exceedingly well in recent times, added Sharma.

The sector index has more than doubled so far in
the year.

"All we are seeing is portfolio churning, There is lack of
fresh buying as people are deterred by global cues," said Arun
Kejriwal, director of research firm KRIS.

Asian shares were under pressure as investors locked gains
in riskier assets after U.S. data raised fears that a global
economic recovery could lose momentum. [ID:nSP466650]

In the broader market, losers were almost equal to the
number of gainers, with 107 million shares changing hands on
the Bombay Stock Exchange.

The 50-share NSE index .NSEI was down 0.4 percent at
4,967.10.

STOCKS ON THE MOVE

* Thermax (THMX.BO: Quote, Profile, Research) was up 4.6 percent at 603.50 rupees.
The engineering firm said it had received an order worth 4.77
billion rupees to set up a captive power plant for a ferro
alloy unit in the eastern state of Orissa. [ID:nBMB009118]

* NDTV Ltd (NDTV.BO: Quote, Profile, Research) rose 6.2 percent to 142.30 rupees.
U.S. media firm Scripps Networks Interactive Inc (SNI.N: Quote, Profile, Research) said
it would buy a majority stake in the broadcaster's lifestyle
unit for $55 million [ID:nBNG397102]

MAIN TOP 3 BY VOLUME

* Suzlon Energy (SUZL.BO: Quote, Profile, Research) on 11.8 million shares

* Unitech (UNTE.BO: Quote, Profile, Research) on 6 million shares

* Mahindra Satyam (SATY.BO: Quote, Profile, Research) on 1.9 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dlr and yen gain, high-yielders remain vulnerable
[FRX/]
* Oil steady at below $78, traders seek fresh cues
[O/R]
* Dollar firm, shares dip in shift to safety
[MKTS/GLOB]
* Wall St drops on recovery concerns, tech rout
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by John Mair)