Indian shares rebound 3.3 pct, Reliance up 5.5 pct

* Stocks post biggest rise in 3-½ mths after falling 6
days

* Rise in world markets, fin min stimulus comments help

* Reliance Industries gains after falling 5.7 pct on Tues
(Updates to close)

By Ami Shah

MUMBAI, Nov 4 (Reuters) - Indian shares rebounded 3.3
percent on Wednesday, their biggest rise in more than three and
a half months, supported by the government's assurance fiscal
stimulus would be maintained and a world stocks rally.

Finance Minister Pranab Mukherjee said late on Tuesday the
government will maintain its fiscal stimulus due to uncertainty
arising from a poor monsoon and the global outlook, as data
showed the summer crop could post a bigger-than-expected fall.
[ID:nL3634290]

Energy giant Reliance Industries (RELI.BO: Quote, Profile, Research) rose 5.5 percent
to 1,920.65 rupees, erasing most of its 5.7 percent fall on
Tuesday.

A legal dispute between billionaire Mukesh Ambani-led
Reliance Industries and Reliance Natural Resources (RENR.BO: Quote, Profile, Research),
controlled by younger brother Anil, was disrupted on Wednesday
when a judge withdrew from a Supreme Court hearing, citing
potential conflict of interest. [ID:nBOM398293]

The 30-share BSE index .BSESN closed up 3.29 percent, or
507.19 points, at 15,912.13, after falling 8.4 percent over the
previous six sessions. Twenty-seven of its components gained.

Ved Prakash Chaturvedi, managing director of Tata Asset
Management, said the market's slide over the past week was
exaggerated was now responding to positive cues from overseas.

"Investors have entered at lower levels believing in the
fundamental strength of our market," Deven Choksey, managing
director and CEO of K.R. Choksey Shares.

Foreigners have moved more than $14 billion into Indian
stocks since the start of January, helping the benchmark rise
nearly 65 percent in 2009.

But, the index is down 9 percent from 17,493.17, its
highest in 2009 which was set on Oct. 17.

Market participants are not sure of the direction.

"Whether the rise we saw today will sustain in the near
term, is a question mark," Choksey said.

Software services companies rose on expectations of better
growth outlook.

Second-largest software services exporter Infosys
Technologies (INFY.BO: Quote, Profile, Research) climbed 4.7 percent to 2,239.60 rupees
while leader Tata Consultancy (TCS.BO: Quote, Profile, Research) rose 3 percent to 625.85
rupees.

Infosys, is in a "sweet spot of growth", with banking
financial services and insurance vertical leading the charge,
JM Financial analyst Gopal Agarwal said in a note.

Engineering and construction firm Jaiprakash Associates
(JAIA.BO: Quote, Profile, Research) rose 9.4 percent to 212.65 rupees after it said
cement shipments in October rose 41.3 percent from a year
earlier to 0.816 million tonnes. [ID:nBOM534597]

In the broader market, gainers outnumbered losers in the
ratio of 1.9:1.

The 50-share NSE index .NSEI closed 3.2 percent higher at
at 4,710.80.

STOCKS THAT MOVED

* Outsourcer Mahindra Satyam (SATY.BO: Quote, Profile, Research) was up 4.2 percent
at 103.15 rupees, after it said it would work with Swedish
defence and aerospace firm Saab (SAABb.ST: Quote, Profile, Research) to develop
applications and technology solutions in India for the defence
and security market. [ID:nBOM442637]

* Suzlon Energy (SUZL.BO: Quote, Profile, Research) extended its losses and closed
5.3 percent lower at 55.15 rupees, after the wind turbine maker
said its September quarter loss widened and cut its full-year
sales forecast due to order delays. [ID:nN31447140]
[ID:nBOM535009]

MAIN TOP 3 BY VOLUME

* Suzlon Energy on 32.7 million shares

* Unitech (UNTE.BO: Quote, Profile, Research) on 17.9 million shares

* Reliance Natural Resources on 10.6 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar slips, markets brace for Fed decision
[FRX/]
* Oil rises above $80 on crude stocks, dollar
[O/R]
* Stocks, oil rise ahead of Fed policy verdict
[MKTS/GLOB]
* U.S. stock futures signal gains; all eyes on Fed
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Ranjit Gangadharan)