MARKET EYE-Indian shares falter; Infosys, HFDC Bank fall

* The BSE index

falls 0.5 percent, while the 50-share NSE index is down 0.5 percent on caution ahead of corporate earnings. * Blue chips that report earnings on Friday lead the fall in India: Infosys

falls 1.4 percent, while HDFC Bank

is down 0.9 percent. * Traders still welcomed a government panel report recommending India scrap a law that taxes asset transfers retrospectively.

* The measure unveiled earlier this year was widely seen as targeting Vodafone

after a controversial 2007 purchase of the Indian assets of Hutchison Whampoa , but foreign investors had worried the loose language could also ensnare portfolio investments. * Telecom shares extend fall over airwave surcharge concerns: Bharti Airtel

shares fell 1 percent while IDEA

falls 1.1 percent.