Wires

MARKET EYE-Indian shares extend falls; blue chips hit

* The BSE index

fall 1 percent, while the 50-share NSEindexdeclines 1.1 percent, heading for a second day oflosses.* Investors book profits after the BSE index rose to 17-monthhighs on Friday, while the NSE hit its highest in nearly18-months.* Reliance Industries

falls 4 percent after MorganStanley cuts its rating to 'underweight' from 'equal-weight',citing expectations for weaker refining margins and valuationconcerns among other factors.

* DLF Ltd

drops 7.2 percent after anti-corruptionactivists accused the company of improper dealings with theson-in-law of the country's ruling party chief Sonia Gandhi.Both the property developer and the family member deny theaccusations.

* Infosys

falls 1.3 percent ahead of its Q2 resultsexpected on Friday, with investors worried the software serviceexporter will have to cut its guidance to reflect the strongerrupee

and a potential weakening in global demand.

(abhishek.vishnoi@thomsonreuters.com)