Indian shares choppy, investors watch fund flows

MUMBAI (Reuters) - Indian shares were choppy on Thursday, swinging between positive and negative territories, as robust domestic growth was offset by global credit worries and concerns about fund outflows.

By 11:20 a.m., the benchmark BSE 30-share index was up 0.08 percent at 18,617.18 points, after falling in early deals to 18,330.35 -- its lowest since Nov. 12.

The index, which had dropped 6.7 percent in the previous five sessions, is now 8 percent away from a life high of 20,238.26 hit on Oct. 30.

Traders said global weakness was weighing on sentiment, with investors looking to cut exposure at every rise.

In the broader market, losers led gainers 1,639 to 831 on volume of nearly 177 million shares.

There were worries foreign portfolio inflows, which had driven the index to a series of record highs between September and October, could slow down because of souring appetite for risky equity.

Foreign funds have been net sellers of $400 million so far this month, and traders said they expected more unwinding in the coming weeks.

"These numbers don't tell us that they (foreign investors) are feeling bullish on India," Deepak Singh, a Bangalore-based independent analyst, said.

Engineering and construction firm Larsen & Toubro was down 0.9 percent at 4,070 rupees, as investors locked in profit in the stock that has nearly tripled this year.

State-run Bharat Heavy Electricals Ltd was up 0.1 percent at 2,489.05 rupees after it won a $535 million contract.

The 50-share NSE index was down 0.26 percent at 5,546.85.

Elsewhere in the region, Karachi's 100-Share index was up 0.57 percent at 13,586.55 points, while Colombo's All-Share index gained 0.66 percent to 2,594.98.

STOCKS THAT MOVED

* Debutant stainless steel kitchenware maker Varun Industries Ltd was trading at 106.75 rupees, well above its initial public offer at 60 rupees.

* Puravankara Projects Ltd gained 2.01 percent to 402.95 rupees after the realtor said it won a bid at 6.3 billion rupees from Andhra Pradesh Industrial Infrastructure Corp for the development of a project in the Hi-tech City at Hyderabad.

MAIN TOP 3 BY VOLUME

* Reliance Natural Resources Ltd on 8.3 million shares.

* Ispat Industries Ltd on 7.7 million shares.

* Tata Teleservices (Maharashtra) Ltd on 7.5 million shares.