mahikarnam

Indian shares shed more than 1 percent on Tuesday, after rising more than 6 percent in the previous five sessions, with investors awaiting industrial data for direction.

Industrial output in June is expected to have grown an annual 5 percent, a slight rebound from May but still way below double-digit levels seen in 2006 and early 2007. The data is due by noon.

Shares in No. 2 lender ICICI Bank fell 3 percent to 747.45 rupees, as investors locked in profits after the stock had jumped more than 20 percent in five days after inflation expectations eased.

By 11:40 a.m., the benchmark 30-share BSE index was down 1.03 percent, or 159.86 points, at 15,344.06, with 23 components falling. The market opened 0.5 percent higher and then fell as much as 1.5 percent.

"Some profit booking was on the cards after the recent rise," said Amitabh Chakraborty, president of equities at Religare Securities. "If the industrial output data doesn't disappoint too much then I don't see much weakness in the short term."

The BSE index, which is down 24 percent in 2008, had risen in the last few sessions after a sharp drop in global oil prices eased fears of upward pressure on interest rates in Asia's third-largest economy.

London Brent crude fell more than $1 a barrel on Tuesday as the U.S. dollar climbed to six-month highs, outweighing concerns over possible supply disruptions due to the Russia-Georgia conflict.

JM Financial Services said in a report the BSE index looked set to get closer to its short-term target of 16,000 this week, after having crossed important resistance of 15,300.

Brokerage India Infoline, however, said the market was still facing headwinds, both local as well global, and investors should not get get carried away by momentum as the trend could reverse rapidly.

Shares in Infosys Technologies fell 3.7 percent to 1,609 rupees on worries about the business outlook amid a weakening U.S. economy and turmoil in the global banking and financial services industry.

In the broader market, 1,208 losers were ahead of 939 gainers on volume of 110 million shares.

The broader 50-share NSE index was down 0.75 percent at 4,585.65.

Elsewhere in the region, Karachi's 100-share index fell 0.4 percent to 10,132.02, while Colombo's All-Share index edged down 0.12 percent at 2,461.45.