Sept. 4 (Bloomberg) -- India's benchmark stock index fell the most in a week, led by oil companies and commodity-related shares, as falling shipping rates raised concern demand for raw materials will plunge.

Reliance Industries Ltd., operator of the world's third- biggest refinery, dropped the most in a week. Sterlite Industries (India) Ltd., the nation's largest copper producer, slumped 3.9 percent, its biggest decline since Aug. 12.

``Markets globally are building in a scenario of slower growth,'' said Shashank Khade, who manages about $400 million for wealthy investors at Kotak Securities Ltd. in Mumbai. ``Falling oil and commodity prices indicates a fall in demand.''

The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 150.76, or 1 percent, to 14,899.10 at the close, its biggest decline since Aug. 28. The S&P CNX Nifty Index on the National Stock Exchange declined 56.25, or 1.3 percent, to 4,447.75.

Copper has fallen 5.8 percent in the past month as oil tumbled 9.3 percent, eroding demand for investments in commodities. The Baltic Dry Index, a measure of commodity shipping rates, tumbled 5 percent yesterday on concern China's demand for imports of iron ore will weaken.

Oil prices slid this week to $105.46, the lowest since April, after Gustav, the most powerful storm since Katrina and Rita in 2005, caused little damage to Gulf of Mexico production. It traded $110.20 a barrel at 10:41 a.m. London time.

Reliance fell 2.7 percent to 2,152.25 rupees, the biggest decline since Aug. 28. Sterlite fell to 512.85 rupees. Oil & Natural Gas Corp., India's biggest exploration company, slid 3.1 percent to 1,068.35 rupees, the most since July 25.

Overseas investors sold a net 1.72 billion rupees ($42.6 million) of Indian stocks on Sept. 1, according to the nation's market regulator.

The following are among the most active stocks traded on the Bombay and National Stock Exchanges. Stock symbols are in parentheses after company names:

Austral Coke & Projects Ltd. (ACKP IN) gained 29.95 rupees, or 15 percent, to 225.95. The Indian maker of metallurgical coke sold shares at 196 rupees apiece in the initial public offering last month, raising 1.42 billion rupees.

Moser Baer India Ltd. (MBI IN) climbed 10.35 rupees, or 9.8 percent, to 116.50, the highest since July 9. The nation's largest maker of computer compact discs rose after announcing an investment of 4.11 billion rupees ($93 million) in its photovoltaic unit. The money will be invested by Nomura Holdings Inc., CDC Group Plc., Credit Suisse Group AG, Morgan Stanley and Infrastructure Development Finance Corp., Moser Baer said in a release to the Bombay Stock Exchange today.

Ranbaxy Laboratories Ltd. (RBXY IN) added 3.35 rupees, or 0.7 percent, to 493.45. Daiichi Sankyo Co., Japan's third- largest drugmaker, secured European antitrust approval to buy Ranbaxy, India's biggest drugmaker.

Sun Pharmaceutical Industries Ltd. (SUNP IN) declined 19.6 rupees, or 1.3 percent, to 1,511.9, its first decline in four days. Israel's Supreme Court issued a temporary order yesterday blocking India's most valuable drugmaker's bid to take over Taro Pharmaceutical Industries Ltd. The order will remain in force until the Supreme Court rules on Taro's request to overturn an Aug. 26 ruling by a lower court that would have allowed Sun to proceed with the takeover.

Tata Power Ltd. (TPWR IN) gained 23.75 rupees, or 2.2 percent, to 1,094.05. India's biggest electricity generator outside state control agreed to buy an 11.4 percent stake in Geodynamics Ltd., an Australian company seeking to develop a geothermal energy project.

To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net.

Last Updated: September 4, 2008 07:11 EDT