Indian shares rise 0.2 pct; Reliance, HDFC Bank up

* Metal producers rise after Goldman raises copper forecast

* Resistance seen after strong gains in past three
sessions
(Updates to midday)

MUMBAI, Sept 9 (Reuters) - India shares were trading up 0.2
percent on Wednesday, led by energy giant Reliance Industries
(RELI.BO) that rose as oil prices held their ground after
jumping 4.5 percent the previous day.

Metal stocks Hindalco Industries (HALC.BO) and Sterlite
Industries (STRL.BO) climbed 1.8-2.8 percent after Goldman
Sachs on Tuesday raised its copper price forecast for end-2010
by more than 30 percent on evidence of stronger-than-expected
recovery in global industrial activity. [ID:nL8233753]

However, there was resistance after shares had rallied 4.7
percent over the past three sessions and doubled the gains in
the main index from its 2009 low in early March.

At 12:11 p.m. (0641 GMT), the 30-share BSE index .BSESN
was up 0.17 percent at 16,150.62, with only 12 stocks gaining,
after falling as much as 0.5 percent in early trade.

"I think it's logical that profit sales will come in at
this level after we saw a decent rise in the last few days,"
said R.K. Gupta, managing director of Taurus Mutual Fund.

The benchmark index had climbed to its highest close in 15
months on Tuesday, taking gains to 67 percent so far this year
and more than doubling from its March low of 8,047.17.

"The only silver lining is the late revival of monsoon but
what worries is credit offtake is not high," Gupta said.

Loan growth has been sluggish so far this year as banks
have been wary of lending funds. Latest data showed bank credit
expanded an annual 14.9 percent in the week ended Aug. 14,
below a central bank projection of 20 percent for 2009/10.

Still, private sector HDFC Bank (HDBK.BO) was among the
main gainers, rising 0.7 percent to 1,465.30 rupees.

Energy explorer Reliance, which has the most weight in the
main index, firmed 2.9 percent to 2,135 rupees on recent spike
in oil prices, with foreign funds among the buyers, traders
said.

The stock has risen 91 percent from a March 6 low, compared
with a more than 100 percent jump in the index.

State-run refiners, who are forced to sell fuel at
government-set low prices, dropped as oil steadied above $71 a
barrel on Wednesday.

Indian Oil Corp (IOC.BO), Hindustan Petroleum Corp
(HPCL.BO) and Bharat Petroleum Corp (BPCL.BO) were trading 2.5
percent to 3.4 percent lower.

The 50-share NSE index .NSEI was up 0.1 percent at
4,811.05.

Asian shares were down with Japan's Nikkei .N225 shedding
0.8 percent, while MSCI's measure of other Asian markets
.MSCIAPJ was down 0.4 percent.

MAIN TOP 3 BY VOLUME

* IFCI (IFCI.BO) on 18.6 million shares

* NHPC (NHPC.BO) on 8.7 million shares

* Ispat Industries ISPT.BO on 5.2 million shares

STOCKS ON THE MOVE

* Jet Airways (JET.BO) extended losses and fell as much as
6.5 percent to 245 rupees after the carrier cancelled flights
for the second successive day as a flash strike by its pilots
continued. [ID:nBOM501366]

* Uttam Galva Steels (UTTM.BO) rose nearly 5 percent to a
new high of 137.85 rupees -- up as much as 21 percent since
Sept. 7 -- following ArcelorMittal's announcement it had made
an open offer for a 29.39 percent stake in the Indian steel
maker.

FACTORS TO WATCH
* For technical analysis, double click on
www.reutersindia.net
* Indian rupee off 2-wk high on dollar short-covering
[INR/]
* India bond yields bounce on cbank comments
[IN/]
* Dollar on defensive; Aussie briefly at 1-year high
[FRX/]
* Oil steady after dollar-led gains; OPEC eyed
[O/R]
* Wall St ends up on M&A hopes, strong commodities
[.N]
* Asia stocks dip from 1-yr high, dollar hit
[MKTS/GLOB]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)