Indian shares snap 5-day gains on Pakistan turmoil

(Updates to close)

By Sumeet Chatterjee

BANGALORE, Dec 28 (Reuters) - Indian shares edged down in
see-saw trade on Friday, snapping five days of gains on worries
about regional political unrest after the assassination of
Pakistani opposition leader Benazir Bhutto.

Telecoms firm Bharti Airtel Ltd (BRTI.BO: Quote, Profile, Research) led the fall.

Pakistan's Karachi stock market was shut as authorities
ordered three days for mourning.

Analysts expected Indian markets to bounce back in the week
ahead as investors bet on strong quarterly corporate results
and increased overseas fund flows into Asia's third-largest
economy next month.
The benchmark 30-share BSE index .BSESN ended down 0.05
percent, or 9.77 points, at 20,206.95, after dipping nearly 1
percent in early deals then briefly turning positive.

The main index has however risen 5.5 percent on the week,
its biggest weekly gain since the week of Oct. 26 when it rose
9.6 percent. It is 1.4 percent away from its Dec. 13 record
high of 20,498.11 and is up 46.6 percent so far in 2007.

"Today's fall is linked to the downturn we saw in the
global markets," said Neeraj Dewan, director at Quantum
Securities in New Delhi. "The market should remain positive
till the results start flowing in next month."

Kotak Securities said a sustained break of support at
20,150 might trigger a retest of major support at 19,900. It
advised clients to look for buying opportunities at major
supports in power, metals and refinery stocks.

Bhutto was killed on Thursday at a rally in Rawalpindi,
raising fears of instability in Pakistan and upsetting markets
globally as investors rushed to less risky assets such as bonds
and gold. [ID:nL27154356]

STOCKS THAT MOVED

Shares in Bharti Airtel fell 2.7 percent to 940.70 rupees,
its lowest close in more than a week. The stock has slipped in
recent sessions amid controversey over spectrum allocation by
the regulator.

Bharti announced after market hours it was selling up to 9
percent in its tower unit to seven international investors,
including Goldman Sachs and Temasek, for a total $1 billion.

Wipro (WIPR.BO: Quote, Profile, Research) ended down 3.5 percent at 529.95 rupees
after French technology consultancy Capgemini (CAPP.PA: Quote, Profile, Research) said it
had had no contact with the Indian software services exporter.

Wipro stock jumped on Monday after a newspaper said it was
likely to bid for Capgemini by the end of January.

Tata Steel (TISC.BO: Quote, Profile, Research) rose 2.8 percent to 931.40 rupees,
while the metal sector index gained 2.5 percent on
speculation of higher metal prices, traders said.

Ranbaxy Laboratories Ltd (RANB.BO: Quote, Profile, Research) rose 1 percent to 415.60
rupees after it received tentative approval from the U.S. Food
and Drug Administration for galantamine hydrobromide oral
solution. [ID:nBOM272229]

Data showed foreigners were net buyers of Indian shares
worth $600 million on Wednesday, after they sold shares worth
$1.3 billion in four sessions last week.

In the broader market, 2,249 gainers were ahead of 636
losers on volume of 679 million shares.

The broader 50-issue NSE index .NSEI shed 0.03 percent to
6,079.70 points.

Elsewhere in the region, Colombo's All-share index .CSE
ended up 0.02 percent at 2,538.29 points.

MAIN TOP 3 BY VOLUME

* SpiceJet Ltd (SPJT.BO: Quote, Profile, Research) on 22 million shares

* Himachal Futuristic Communications Ltd (HMFC.BO: Quote, Profile, Research) on 17
million shares

* Reliance Natural Resources Ltd (RENR.BO: Quote, Profile, Research) on 15 million
shares.

FACTORS TO WATCH
* Indian rupee eases as risk aversion rises
[INR/]
* India bond yields ease after repo auction results
[IN/]
* FOREX-Dollar index on track for worst week in 13 months
[FRX/]
* Oil steady near $97 on lower US stocks, Bhutto
[O/R]
* GLOBAL MARKETS-Stocks shaken by Bhutto killing; yen surges
[MARKETS/AS]
* Wall St futures rise; financials, data in focus
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Charlotte Cooper)