Indian shares slip 0.3 pct in light trade

* Monthly derivatives expiry keeps investors on sidelines

* Reliance Industries eases as it begins trading ex-bonus

* Mahindra Satyam extends fall for 2nd day
(Updates to midday)

MUMBAI, Nov 26 (Reuters) - Indian shares were trading 0.3
percent lower on Thursday in light volume, ahead of the expiry
of monthly derivatives contracts and weighed down by weak Asian
markets.

By 12:02 p.m. (0632 GMT), the 30-share BSE Index
was trading down 0.3 percent at 17,147.70, with 14 of its
components declining.

"Trade will be lacklustre until the second half when we
will see more action as derivatives contracts expire today,"
said Vaibhav Sanghavi, director of Ambit Capital.

Reliance Industries (RELI.BO), which has the most weight in
the index, slipped 0.3 percent to 1,093.45 rupees as the energy
major began trading ex-bonus. The company had set one bonus
share for every held.

Outsourcer Mahindra Satyam (SATY.BO) extended losses and
was down 4.1 percent at 86.80 rupees, after India's federal
investigation agency filed new charges over an accounting fraud
that hit the company earlier this year. [ID:nBOM490232]

The stock fell as much as 8.3 percent in early deals after
sliding more than 10 percent on Wednesday.

V.K. Sharma, head of private client group at HDFC
Securities, said he was advising clients to stay away from the
stock until there was further clarity.

"Investors are playing a blind game until the audited
numbers are out. There could be more skeletons hidden in the
closet," said V.K. Sharma, head of private client group at HDFC
Securities.

Earlier this month, Chief Executive C.P. Gurnani had told
Reuters TV the restatement of company results for recent years
would be made on or before June 30, 2010. [IDnSP416061]

Cigarette-to-hotel business ITC (ITC.BO) was down 0.9
percent at 266.25 rupees, after 259,923 shares changed hands in
block deals on the National Stock Exchange at 266.35 rupees.

ITC is open to raising its holding in EIH (EIHO.BO), which
runs the Oberoi hotel chain, newspapers had reported on
Thursday, citing ITC's chairman. [ID:nBOM95289]

IT bellwether Infosys (INFY.BO), which had touched an
all-time high on Wednesday, edged 0.5 percent lower at 2,421.40
rupees.

Private-sector HDFC Bank (HDBK.BO) was down 1.2 percent at
1,780.80 rupees, after rising 4.8 percent over four sessions.

In the broader market, losers outpaced gainers in a ratio
of 1.2:1 on low volume of 122 million shares.

The 50-share NSE index was down 0.3 percent at
5,090.80.

STOCKS ON THE MOVE

* Tata Steel (TISC.BO), the world's eighth-largest steel
maker, was down 1.6 percent at 553.20 rupees ahead of its
consolidated second-quarter results.

* Software services firm Tech Mahindra (TEML.BO) fell 2.9
percent to 897.40 rupees on concerns about its unit Mahindra
Satyam.

MAIN TOP 3 BY VOLUME

* Mahindra Satyam on 9.7 million shares

* Unitech (UNTE.BO) on 2.8 million shares

* Vijaya Bank (VJBK.BO) on 2.6 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar hits 14-year low on yen, losses deepen
[FRX/]
* China growth not seen leading to oil price rally
[O/R]
* Dollar hits 14-yr low vs yen, gold new peak
[MKTS/GLOB]
* Wall St ends higher on jobless claims, home sales
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)
((ami.shah@thomsonreuters.com; +91 22 6636 9246; Reuters
Messaging: ami.shah.thomsonreuters.com@reuters.net))
((If you have a query or comment on this story, send an email
to news.feedback.asia@thomsonreuters.com))

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