Indian shares rise 1 pct; earnings cheer investors

* Benchmark up 4.3 pct on week, after 9.2 pct jump last
week

* Company profits, economic revival hopes spur global
stocks

* Maruti shoots to record high; ends week up 16.3 pct

* Bharti rebounds after falling 1.1 pct in previous session

* Automakers, Infosys, ONGC among other major gainers
(Adds closing prices, details on weekly rise, earnings,
performance against other mkts, analyst comments)

By Pratish Narayanan

MUMBAI, July 24 (Reuters) - Indian shares rose 1 percent on
Friday, notching up their second straight weekly gain, as
strong corporate earnings reinforced expectations for an
economic rebound.

Maruti Suzuki (MRTI.BO) raced to an all-time high, a day
after the leading carmaker reported an unexpected 25 percent
jump in quarterly profit on higher sales and lower raw material
costs. [ID:nBMA003418]

Top telecoms firm Bharti Airtel (BRTI.BO) bounced 2.1
percent to 415.50 rupees as a two-for-one stock split took
effect, after falling 1.1 percent the previous day following a
drop in a key measure of growth although the company posted a
forecast-beating 24 percent jump in quarterly profit.
[ID:nDEL469071]

No. 1 utility-vehicle maker Mahindra & Mahindra (MAHM.BO),
top vehicle maker Tata Motors (TAMO.BO) and outsourcer Infosys
Technologies (INFY.BO) were among the other major gainers.

"Over the past few days, we are are seeing that global
sentiment has improved, and the quarterly results have exceeded
expectations," A.N. Sridhar, fund manager at Sahara Mutual
Fund, said.

"Everyone thought the results will be better than the
previous quarter, but no one expected them to be so much
better."

The BSE index .BSESN ended up 0.97 percent, or 147.92
points, at 15,378.96, with 23 stocks advancing, after falling
as much as 0.4 percent and rising 1.2 percent at one stage.

Out of the 12 companies in the 30-share index that have
reported results, 10 beat analysts estimates, and all but one
posted higher quarterly earnings.

The benchmark rose 4.3 percent on the week, after jumping
9.2 percent last week, as efforts by governments around the
world to pump trillions of dollars into corporate rescues and
economic stimulus measures appeared to be bearing fruit and
spurred a global equities rally.

Oil and Natural Gas Corp (ONGC.BO) erased losses of as much
as 1.8 percent and ended up 3.1 percent at 1,126.20 rupees,
after the state-run explorer posted a fourth straight decline
in quarterly profit, but beat estimates. [ID:nBOM436237]

The BSE index has outperformed most other major benchmarks
across the globe, soaring 91 percent from a 2009 low in early
March. It is up 59.4 percent this year -- the fourth-best
performance among major world benchmarks tracked by Reuters --
after plunging by more than half in 2008.

This has stoked concerns about rich valuations, but
analysts say the slew of strong corporate results will spark
further earnings upgrades and justify shares prices.

Though the market may consolidate in the short term,
increasing signs of a recovery in the domestic as well as
global economy keep long-term prospects bright, analysts said.

"The latest quarterly results have shown that most
companies are exceeding analyst estimates, and this means the
domestic economy is doing well," said Gopal Agrawal, head of
equity at Mirae Asset Global Investment Management.

"So if there is a global revival, India will be much better
off than others."

Maruti Suzuki shot to a record high of 1,397.50 rupees,
before falling back to end up 6.4 percent at 1,377.85,
extending gains for the week to 16.3 percent.

No. 2 IT-services firm Infosys firmed 2.2 percent to
2,003.35 rupees, while ONGC rose 3.1 percent to 1,126.20
rupees.

Mahindra & Mahindra climbed 3.6 percent to 830.85 rupees,
while Tata Motors advanced 9.7 percent to 373.50 rupees.

The auto sector .BSEAUTO jumped 9.4 percent on the week.

Reliance Industries (RELI.BO), India's largest listed firm
with the most weight in the main index, fell 1.2 percent to
2,013.75 rupees ahead of its quarterly results. But the stock
ended the week up 4.2 percent.

In the broader market, gainers led losers 2 to 1 on
relatively heavy volume of 517.8 million shares.

The 50-share NSE index .NSEI rose 1 percent to 4,568.55.

Asian shares were higher, with Japan's Nikkei .N225
rising 1.55 percent, while MSCI's measure of other Asian
markets .MSCIAPJ was up 0.6 percent.

At 1038 GMT, the FTSEurofirst 300 .FTEU3 index of top
European shares was up 0.3 percent.

MAIN TOP 3 BY VOLUME

* Mahindra Satyam (SATY.BO) on 33.8 million shares

* Suzlon Energy (SUZL.BO) on 32.7 million shares

* Unitech (UNTE.BO) on 23 million shares

STOCKS THAT MOVED

* Ambuja Cements (ABUJ.BO) fell 2 percent to 95.05 rupees
after the country's third-largest cement producer reported a 44
percent fall in quarterly net profit. [ID:nBOM525274]

* Gujarat State Petronet Ltd (GSPT.BO) rose 5.2 percent to
66.35 rupees after the state-run natural gas transporter's
June-quarter net profit more than doubled. [ID:nBMB005993]

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee firms tracking stx; Asian currencies
[INR/]
* Indian bond yields up; auction results awaited
[IN/]
* Euro gains on better eurozone PMI, German Ifo data
[FRX/]
* Oil scales 3 wk high on equities, gasoline [O/R]
* World stocks push higher, euro zone data helps [MKTS/GLOB]
* Stock index futures point to higher Wall St open

[.N] * For closing rates of Indian ADRs

INADR (Editing by Ranjit Gangadharan)