Nov. 28 (Bloomberg) -- India's Sensitive Index fell after metal and oil prices dropped on concern a slowdown in the U.S. economy will erode demand for raw materials. Hindalco Industries Ltd. and Oil & Natural Gas Corp. declined.

``Metal and oil prices have come off and that's feeding through to commodity stocks,'' said R. K. Gupta, who manages the equivalent of $100 million of stocks at Credit Capital Asset Management Ltd. in New Delhi.

The Bombay Stock Exchange's Sensex fell 188.86, or 1 percent, to 18,938.87. Twenty-three of the 30 stocks in the index declined. The S&P/CNX Nifty Index on the National Stock Exchange dropped 80.60, or 1.4 percent to 5,617.55. Nifty futures for November delivery slid 1.9 percent to 5,620.

Hindalco, the country's largest non-ferrous metals producer, fell 7 rupees, or 3.7 percent, to 184.35. Oil & Natural Gas, the nation's largest explorer, dropped 21.95 rupees, or 1.9 percent, to 1,150.55. Tata Steel Ltd., the world's sixth largest steelmaker, slid 28.9 rupees, or 3.4 percent, to 818.70.

Concerns that the U.S. economy is headed into a recession have helped drag the MSCI Asia Pacific index down by 8.9 percent from its Nov. 1 record. A gauge of U.S. consumer confidence released yesterday fell more than expected this month, while a measure of home prices dropped the most in at least two decades.

Crude oil futures in New York slumped 3.4 percent, the biggest decline since Nov. 13. Copper futures in New York fell 1.9 percent yesterday on speculation slowing economic growth will cut demand in the U.S., the world's second-largest consumer of the metal.

Goldman Sachs Group Inc. yesterday cut its rating on metals producers to ``neutral'' from ``attractive'' saying investments in metals companies are less attractive as demand slows for commodities including copper, aluminum and zinc.

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

Stocks added to derivatives list: Hindustan Zinc Ltd. (HZ IN), NIIT Ltd. (NIIT IN) and Jindal Saw Ltd. (JSAW IN) were among 15 additional stocks that will be included by the National Stock Exchange in its derivatives segment from Nov. 30.

Hindustan Zinc, the country's largest producer of the commodity, added 37.8 rupees, or 5.1 percent, to 774.95. NIIT, India's largest computer training company, rose 11.55 rupees, or 8.9 percent, to 141.10, its biggest gain in more than two months. Jindal Saw, an Indian pipemaker, climbed 65.1 rupees, or 8.3 percent, to 853.35.

Bharat Heavy Electricals Ltd. (BHEL IN) gained 51.6 rupees, or 1.9 percent, to 2,724.55. India's biggest power-equipment maker won orders worth 40 billion rupees from NTPC Ltd. (NATP IN) for supplying equipment.

DLF Ltd. (DLFU IN) fell 18.45 rupees, or 2.1 percent, to 879.50. India's biggest property developer will partner with Amanresorts founder Adrian Zecha to acquire a controlling stake in the luxury resorts chain. DLF and Zecha will pay $400 million for the acquisition, which includes $150 million of debt, DLF said in a statement yesterday after the markets closed.

Jaiprakash Associates Ltd. (JPA IN) rose 80.5, or 4.7 percent, to 1,794.75. ICICI Venture Funds Management Co., a unit of ICICI Bank, paid $800 million to buy a stake of as much as 15 percent in Jaypee Infratech Ltd., a unit of Jaiprakash Associates, the Business Standard newspaper reported, without saying where it obtained the information.

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

Last Updated: November 28, 2007 06:29 EST