Indian shares fall 2.5 pct; banks, builders drop

* Investors jittery on Dubai's debt woes
* ICICI says no material exposure to Dubai firms, but shares
fall
* Traders say weak global sentiment weighs
(Updates to late morning)

MUMBAI, Nov 27 (Reuters) - Indian shares fell more than 2
percent on Friday, with banks and property firms among the big
losers, as nervous investors dumped riskier assets on concerns
over Dubai's debt problems.

Although banks such as ICICI Bank (ICBK.BO) and developers
DLF (DLF.BO) and Unitech (UNTE.BO) said they had no exposure to
the Gulf country, the gloomy global sentiment kept the market
under pressure.

"It is more of a situation of sentiment than actual impact
on our companies," said Rakesh Rawal, head of private wealth
management at Anand Rathi Financial Services.

"Dubai was overexposed to debt as its real estate sector
was very, very highly geared," he said. "Such an event
elsewhere is not ruled out, but seems unlikely. Hopefully, this
is a one-off case."

Dubai said on Wednesday it wanted creditors of Dubai World
and property group Nakheel to agree a debt standstill as it
restructures Dubai World, the conglomerate that spearheaded the
emirate's breakneck growth. [ID:nGEE5AO2L1]

The move raised investor fears that debt defaults could hit
other parts of the globe, and rattled global markets sending
banking shares tumbled.

Engineering and construction firm Lasren & Toubro (LART.BO)
fell as much as 6.2 percent, after a senior company official
said it had about $20 million to $25 million exposure in Dubai.
[ID:nBMA006489]

By 11:25 a.m. (0555 GMT), the 30-share BSE index
was trading down 2.5 percent at 16,433.77, with all components
in the red. It fell as much as 2.7 percent earlier.

In the broader market, losers were nearly five times the
number of gainers on volume of 123 million shares.

ICICI was down 4 percent at 831.20 rupees after falling as
much as 6.4 percent. The No. 2 lender said it had no material
exposure to Dubai corporates. [ID:nBMA006487]

Top lender State Bank of India (SBI.BO) shed 3.5 percent to
2,175 rupees.

DLF slumped 8 percent early but recouped some ground and
was trading down 5.6 percent at 334.50 rupees after the leading
listed real estate firm said it had no exposure to Dubai.
[ID:BMA006489]

The 50-share NSE index was down 2.7 percent at
4,869.45.

STOCKS ON THE MOVE

* Outsourcer Mahindra Satyam (SATY.BO) was down 2.9 percent
at 90.10 rupees, on concerns over its outlook after
investigators said the extent of fraud that had hit Satyam
earlier this year could be bigger than revealed.
[ID:nBMA006488]

* Ranbaxy (RANB.BO) bucked the trend and was up 2.4 percent
at 440.50 rupees after the drug maker said it had launched a
generic version of GlaxoSmithKline's (GSK.L) medicine Valtrex
in the United States. [ID:nDEL280226]

* Suzlon Energy (SUZL.BO) was up 0.4 percent at 69.95
rupees after the wind turbine maker said its German unit
REpower Systems (RPWGn.DE) had signed a set of wind farm
project contracts with EDF Energies Nouvelles and RES Canada
for delivery of up to 954 megawatt. [ID:nBMB009162]

MAIN TOP 3 BY VOLUME

* Suzlon Energy on 7 million shares

* Mahindra Satyam on 4.7 million shares

* Unitech on 3.3 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Yen surges as Dubai woes put investors off risk
[FRX/]
* Oil falls to $76 amid Dubai debt jitters
[O/R]
* Asia shares skid as Dubai debt worries spread
[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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