Nov. 8 (Bloomberg) -- India's benchmark Sensitive Index dropped to a two-week low after U.S. financial companies announced more subprime mortgage related losses, heightening concern of slower growth in the world's largest economy. ICICI Bank Ltd. led declines.

``News flows from the U.S. have dragged markets down globally,'' said Mahesh Patil, who helps manage $6.9 billion in assets at Birla Sun Life Asset Management Co. in Mumbai. ``The extent to which the subprime losses are going to hit the U.S. economy will need to be watched carefully.''

The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 230.90, or 1.2 percent, to 19,058.93, its lowest close since Oct. 25. The S&P/CNX Nifty Index on the National Stock Exchange declined 83.60, or 1.5 percent, to 5,698.75. Nifty futures for November delivery slid 1.1 percent to 5,720.

Morgan Stanley, the second-biggest U.S. securities firm, said its holdings of assets related to U.S. subprime mortgages have lost $3.7 billion of their value.

The Standard & Poor's 500 Index fell 2.9 percent in the U.S. yesterday, the most since Aug. 9.

Mortgage-related losses contributed to a 27 percent drop in third-quarter earnings at American International Group Inc., the largest U.S. insurer, and a record $39 billion quarterly loss at General Motors Corp., the world's biggest automaker by output.

ICICI, the country's second-biggest lender, slid 35.15 rupees, or 2.9 percent, to 1,168.65. Reliance Industries Ltd., which runs the world's third-largest refinery, fell 19.9 rupees, or 0.7 percent, to 2,742.75. The two stocks account for about a quarter of the Sensex's weight.

Overseas investors bought a net 51 million rupees ($1.3 million) worth of Indian shares on Nov. 6, according to the latest information on the Securities & Exchange Board of India's Web site.

The following shares rose. Stock symbols are in parentheses after company names:

Colgate Palmolive India Ltd. (CLGT IN) gained 6.1 rupees, or 1.6 percent, to 388.55. The local unit of the world's biggest toothpaste maker has acquired 75 percent equity in Advanced Oral Care Products Private Ltd., Professional Oral Care Products Private Ltd. and SS Oral Hygiene Products Private Ltd., which have been manufacturing toothpaste and supplying it to Colgate.

Indian Oil Corp. (IOCL IN) climbed 10.2 rupees, or 2 percent, to 513.65. The Indian refiner plans to increase crude oil imports from Nigeria by 50 percent to 3 million tons a year, the Press Trust of India reported, citing the company's director B.M. Bansal. The state-owned Indian Oil is also looking to start refining and petrochemical ventures in Nigeria and other African countries, the report said.

Ranbaxy Laboratories Ltd. (RBXY IN) rose 3.7 rupees, or 0.9 percent, to 430.90. India's second-biggest drugmaker settled a legal dispute with Astellas Pharma Inc. and Boehringer Ingelheim GmbH, allowing it to sell a copy of the prostate drug Flomax in the U.S. Ranbaxy will sell capsules of tamsulosin, or generic Flomax, starting March 2, 2010, for eight weeks without competition from other generic drugmakers, the company said today in an e-mailed statement.

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

Last Updated: November 8, 2007 06:03 EST