Indian shares up more than 1 pct before cbank move

(Updates to mid-morning)

MUMBAI, Jan 29 (Reuters) - Indian shares rose more than 1
percent in morning trade on Tuesday on expectations the central
bank will cut interest rates at a policy review, with sentiment
also boosted by gains in most Asian markets.

Top private sector firm Reliance Industries (RELI.BO: Quote, Profile, Research) and
No. 2 software exporter Infosys Technologies lead gains.

India's central bank reviews monetary policy on Tuesday,
with analysts slightly favouring a cut in the key lending rate
following a hefty U.S. rate cut last week. See: [RBI/INT].

Seven of 13 analysts polled by Reuters expect a 25 basis
point cut in the repo rate to 7.50 percent. The announcement is
due at noon (0630 GMT).

At 10:33 a.m. (0503 GMT), the 30-share BSE index .BSESN
was up 1.13 percent, or 205.9 points, at 18,358.64, with all
but four of the components rising.

It rose as much as 1.86 percent earlier in the session.

The index had recovered from an intra-day fall of 5 percent
to end 1.1 percent down on Monday as banks and auto shares were
boosted by rate cut expectations.

If the central bank decides to cut the repo, its lending
rate to banks, it would be the first such move in nearly four
years.

The central bank said on Monday that inflation risks from
high international oil and food prices continued, which some
analysts interpreted as a sign rates would be held steady.

"Status quo can be maintained since there is no urgent need
to cut rates," brokerage India Infoline said in a note.

"Corporate earnings are strong, credit growth is still
above 20 percent, asset prices have not corrected that much and
inflation remains a threat due to incomplete pass-through of
high crude oil prices," it said.

HDFC Securities analysts said in a research note some
selling could be expected at higher levels due to nervous
unloading of positions ahead of the futures and options expiry
on Thursday.

Shares in Reliance Industries were up 1.4 percent at 2,601
rupees, while Infosys Technologies gained 3.5 percent to
1,497.05 rupees.

Shares in export-driven software firms, which were beaten
down badly on fears of a recession in their largest market, the
United States, found buyers at lower levels.

Sector leader Tata Consultancy (TCS.BO: Quote, Profile, Research) was up 2.7 percent
at 876.90 rupees, while No. 3 Wipro (WIPR.BO: Quote, Profile, Research) gained 3.4
percent.

Top car maker Maruti Suzuki (MRTI.BO: Quote, Profile, Research) pared early gains and
slipped 0.5 percent to 858.75 rupees, ahead of its quarterly
results later in the day. The company is forecast to post a 19
percent rise in net profit from a year ago to 4.47 billion
rupees.

Largest-listed property firm DLF Ltd (DLF.BO: Quote, Profile, Research) gained 2.6
percent, while mortgage lender Housing Development Finance Corp
(HDFC.BO: Quote, Profile, Research) was up 3.2 percent. Both the stocks would benefit if
there is a rate cut, traders said.

Data showed foreign funds bought $166 million worth shares
on Friday, their first net purchase since Jan. 14. The funds
had unloaded $3.6 billion of stocks in the seven sessions to
Thursday.

In the broader market, 1,511 of the gainers were ahead of
663 losers on volume of 82 million shares.

The 50-share NSE index .NSEI was up 1.47 percent at
5,351.85.

Elsewhere in the region, Karachi's 100-share index .KSE
gained 0.48 percent to 13,948.06, while Colombo's All-share
index .CSE was up 0.31 percent at 2,452.00.

STOCKS ON THE MOVE

* Jet Airways Ltd (JET.BO: Quote, Profile, Research) was down 2.7 percent at 732
rupees after it reported a net loss for December quarter. See
[ID:nBOM12505].

* Suzlon Energy Ltd (SUZL.BO: Quote, Profile, Research) was up 6.1 percent at 334.20
rupees after the the world's No. 4 wind turbine maker said net
profit for the December quarter nearly doubled and that it had
orders worth 171.07 billion rupees ($4.3 billion) as of Jan.
25.

* Chemicals maker India Glycols Ltd (IGLY.BO: Quote, Profile, Research) rose 7
percent to 398.25 rupees after its net profit soared for
December quarter.

MAIN TOP THREE BY VOLUME

* Himachal Futuristic Communications (HMFC.BO: Quote, Profile, Research) on 11.4
million shares

* Reliance Natural Resources (RENR.BO: Quote, Profile, Research) on 3.7 million
shares

* Ispat Industries (ISPT.BO: Quote, Profile, Research) on 2.8 million shares

FACTORS TO WATCH
* For technical analysis click on www.reutersindia.net.
* Indian rupee flat ahead of cbank policy decision
[INR/]
* Indian bonds steady ahead of cbank rate decision
[IN/]
* FOREX-Yen climbs on recession fears, stocks ignored
[FRX/]
* Oil at over $91 on hopes for Fed cut, lower stocks
[O/R]
* GLOBAL MARKETS-Fed cut hopes perk up stocks; gold at record
[MKTS/GLOB]
* US STOCKS- Rate cut hopes lift Wall St; AmEx off late
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Devidutta Tripathy, Editing by Mark Williams)