Indian shares rise 0.3 pct; HDFC, Bharti gain

* Earnings optimism lifts sentiment across Asia

* Some profit-taking seen on near 14 pct rally over 2 weeks

* Reliance Industries falls on results

* Tata Motors falls ahead of quarterly results
(Updates to mid-morning)

MUMBAI, July 27 (Reuters) - Indian shares rose 0.3 percent
on Monday morning as solid corporate results around the world
boosted confidence in Asia, but there were signs of fatigue
after the market had run up almost 14 percent over the past two
weeks.

Top mortgage lender Housing Development Finance Corp
(HDFC.BO), leading telecom firm Bharti Airtel (BRTI.BO) and
consumer goods maker Hindustan Unilever (HLL.BO) led the market
higher after it fell 0.2 percent in opening deals.

No. 2 lender ICICI Bank (ICBK.BO) rose 0.2 percent to
768.35 rupees after it beat forecasts with a 20.6 percent rise
in net profit on Saturday. [ID:nBOM529739]

But energy giant Reliance Industries (RELI.BO), which has
the most weight in the main index, shed 4.6 percent to 1,921
rupees after posting a larger-than-expected 11.5 percent fall
in net profit, its third straight quarterly decline.
[ID:nBOM131460]

"Reliance is acting as an overhang on the market. The
results weren't that good," said S. Ranganathan, head of
research at LKP Shares.

Leading vehicle maker Tata Motors (TAMO.BO) fell 1.9
percent to 366.50 rupees ahead of its June quarter earnings,
which are expected to show a halving of profit. [ID:nBOM491518]

No. 1 carmaker Maruti Suzuki (MRTI.BO) eased 0.8 percent to
1,367.30 rupees, after jumping 16.3 percent last week. On
Thursday, it posted a 25 percent jump in profit.
[ID:nBMA003418]

At 10:58 a.m. (0528 GMT), the 30-share BSE index .BSESN
was up 0.3 percent at 15,421.53 points, with 23 stocks
advancing.

"Excluding Reliance, I think the market is pretty stable.
Most of the other companies have posted pretty good results,"
Ranganathan said.

Of the 15 companies in the 30-share index that have
reported results, 12 have beaten analysts estimates, based on
Reuters polling.

The benchmark rose 4.3 percent last week, after jumping 9.2
percent in the previous 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.

The BSE index has soared 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, which could
lead to a near-term correction, traders said.

Housing Development Finance Corp (HDFC.BO) rose 1.2 percent
to 2,442 rupees, while Hindustan Unilever advanced 3.2 percent
to 291 rupees.

Leading telecoms firm Bharti Airtel (BRTI.BO), which is in
exclusive talks about a possible merger, with South Africa's
MTN (MTNJ.J), climbed 2.5 percent to 426 rupees.

In the broader market, gainers led losers almost 2 to 1 on
relatively moderate volume of 112.1 million shares.

The 50-share NSE index .NSEI was up 0.3 percent at
4,579.80.

Asian shares were higher on Monday, with Japan's Nikkei
.N225 up 1.7 percent, while MSCI's measure of other Asian
markets .MSCIAPJ rose 1.6 percent.

MAIN TOP 3 BY VOLUME

* Suzlon Energy (SUZL.BO) on 5 million shares

* Unitech (UNTE.BO) on 4.8 million shares

* Ispat Industries ISPT.BO on 4.8 million shares

STOCKS ON THE MOVE

* Engineering and construction firm Jaiprakash Associates
(JAIA.BO) rose 3.2 percent to 249.15 rupees, after the
company's June quarter net profit almost quadrupled.
[ID:nBOM429196]

* Shree Cement Ltd (SHCM.BO) gained 6.3 percent to 1,537.35
rupees after its June-quarter net profit more than doubled.
[ID:nBMB006021]

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee up for 3rd day on Asian stock gains
[INR/]
* Indian bond yields tread water before policy review
[IN/]
* Major currencies steady, US GDP to take centre stage
[FRX/]
* Oil rises towards $69, economic optimism supports [O/R]
* Rally in Asia stocks builds; eyes on earnings [MKTS/GLOB]
* Nasdaq ends 12-day run of gains; Dow, S&P 500 rise
[.N] * For closing rates of Indian ADRs

INADR (Reporting by Pratish Narayanan; Editing by
John Mair)