Indian shares fell 3.15 percent to their lowest close in more than five weeks on Monday as investors braced for tough quarterly earnings, but scandal-scarred Satyam jumped 44 percent on hopes a government-appointed board will rescue the company. Traders said the broader market was also weighed down by concerns about tighter regulations and more negative disclosures by companies. Shares in Satyam Computer Services Ltd jumped 44.2 percent to 34.40 rupees on hopes a newly constituted three-member board, appointed by the government, would help salvage the company's clients and staff. Deepak Parekh, chairman of Housing Development Finance Corp and a new director of Satyam, is expected to address a news conference at 5 p.m. (1130 GMT). Satyam's market value had slumped to $330 million last week from more than $7 billion just six months ago following revelations of an accounting fraud. Wipro Ltd shed 9.3 percent to 227.35 rupees after the No. 3 outsourcer said the World Bank had barred the company in June 2007 from direct contracts until 2011, citing a conflict of interest. The 30-share BSE Index dropped 296.42 points to 9,110.05, its lowest close since Dec. 5. It briefly pared losses to 0.8 percent after industrial output unexpectedly rose in November, but then fell 4.1 percent before pulling back. Ved Prakash Chaturvedi, managing director at Tata Mutual Fund, said the market was reacting to negative news in India and globally. 'Funds, both domestic and foreign, are not buying and that is a cause for concern. People are also scared that corporate earnings may not be as good as previous quarters or maybe worse,' he said. Mid-sized software services firm Megasoft Ltd fell to an all-time low of 13.80 rupees after the World Bank said it had barred the firm for four years in December 2007 for participating in a joint venture with bank staff while conducting business with the bank. The stock closed down 0.6 percent at 15.75 rupees. 'People are apprehensive there might be more such disclosures and there are wild rumours doing the rounds,' said Gaurang Shah, chief manager at Geojit Financial Services. Twenty-eight of the BSE index components fell, while in the broader market losers overwhelmed gainers in the ratio of 1.96:1 on above average volume of 283.7 million shares. No. 2 outsourcer Infosys Technologies, which announces quarterly results and gives its outlook on Tuesday, closed down 3.2 percent at 1,156.60 rupees. The 50-share NSE Index closed down 3.5 percent at 2,773.10 points. STOCKS THAT MOVED * Top lender State Bank of India closed down 4.9 percent at 1,156.85 rupees after its chairman said on television that bank had about 5 billion rupees exposure to Maytas Infra , in which the founders of Satyam have a stake. * Construction firm PBA Infrastructure closed up 15.8 percent at 30.35 rupees after the company said it had received an order worth 4.59 billion rupees for building roads and drains. MAIN TOP 3 BY VOLUME * Satyam Computer on 53.2 million shares * Reliance Natural on 18.3 million shares * United Ltd on 17.4 million shares. FACTORS TO WATCH * Indian rupee report * Indian bond report * FOREX-Yen gains on global gloom; euro slides as ECB eyed * Oil falls $2 to below $39 as demand weakens * GLOBAL MARKETS-Economy fears hit stocks and oil again * US STOCKS-U.S. stock futures mixed; Alcoa earnings eyed * For closing rates of Indian ADRs

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