Indian shares rise for 6th day; up 3.7 pct on week

* Bouts of profit-taking keep trade choppy

* Factory output rises for 7th month in July

* Sterlite falls after it raises offer by fifth for Asarco
(Updates to close)

By Ami Shah

MUMBAI, Sept 11 (Reuters) - Indian shares rose for the
sixth session on Friday, helped by signs of an economic upturn
but trading was choppy as investors locked in profits after the
market had more than doubled this week from its low in March.

The 30-share BSE index .BSESN ended up 0.3 percent,
taking gains for the week to 3.7 percent and traders said they
were upbeat about the outlook.

"The next week should be good if global markets continue to
rise and the monsoon sustains the current strength," said
Sanjeev Patkar, director of research at Dolat Capital.

Sterlite Industries (STRL.BO) fell 2.7 percent to 745.90
rupees, after the metals maker said it had raised its open
offer price for bankrupt U.S. copper miner Asarco by a fifth to
$2.565 billion. [ID:nBOM216449]

The stock dropped nearly 5 percent at one stage and was the
biggest loser in the main index.

Top aluminium maker Hindalco Industries (HALC.BO) was a
leading gainer, climbing 6 percent to 124.15 rupees.

Factory output in India grew for a seventh month in July,
adding to signs of economic upturn and to the case for a
gradual tightening of policy, although weak exports and the
impact of a poor monsoon are risks to growth.

Industrial output rose 6.8 percent in July from a year
earlier, matching forecasts, and June's annual growth was
revised up to 8.2 percent percent from 7.8 percent, a 16-month
high, data showed on Friday. [ID:nDEL56281]

"Industrial output growth is clearly on a recovery path and
we expect this momentum to continue," said Sonal Varma, an
economist at Nomura.

The BSE index closed up 0.29 percent, or 47.44 points, at
16,264.30 with only one-third of its components in the green,
after falling as much as half a percent.

The benchmark, which doubled from its March low on Tuesday,
has gained 68.6 percent this year.

"The next big trigger will be companies' second quarter
results and guidance which they will provide," said Gajendra
Nagpal CEO of Unicon Financial. "

Outsourcers Tata Consultancy (TCS.BO), Infosys Technologies
(INFY.BO) and Wipro (WIPR.BO) rose 0.6-1.5 percent after Nomura
upgraded the sector to neutral from bearish, citing improvement
in IT spending environment and operating margin expansion.

Telecoms firm Bharti Airtel (BRTI.BO) rose 1.1 percent to
421.85 rupees after sources said it had sweetened its offer in
ongoing talks a proposed $24 billion cash and share swap deal
with South Africa's MTN (MTNJ.J) [ID:nSP209216]

The 50-share Nifty .NSEI closed 0.21 percent higher at
4,829.55.

India's reservoirs and prospects for winter crops were
boosted after the weather office said on Thursday the monsoon
delivered the season's heaviest rain in the past week.
[ID:nDEL385015]

Asian shares rose on Friday, buoyed by strong Chinese
economic data but Japan missed out on the uptick as exporters
were under pressure on a stronger yen.

European shares were in the positive with, the FTSE 100
index .FTSE up 0.8 percent.

MAIN TOP 3 BY VOLUME

* Reliance Natural (RENR.BO) on 15.7 million shares

* IFCI (IFCI.BO) on 15.4 million shares

* Suzlon Energy (SUZL.BO) on 12.9 million shares

STOCKS THAT MOVED

* Bharat Petroleum Corp (BPCL.BO), Indian Oil Corp (IOC.BO)
and Hindustan Petroleum Corp (HPCL.BO) closed 2.6-5.2 percent
lower as oil prices hovered near $72 a barrel raising the
prospect of more revenue losses for the state refiners who are
forced to sell fuel at low prices.

* Jet Airways Ltd (JET.BO) rose 1.6 percent to 257.40
rupees on expectations a standoff between the airline and its
pilots would end as officials and the pilots union hold talks.
[ID:nDEL363071]

FACTORS TO WATCH
* For technical analysis, double click on
www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Dollar hits 1-yr low, biggest weekly fall since May
[FRX/]
* Oil eases below $72 on demand doubts
[O/R]
* U.S. stock index futures point to higher open
[.N]
* Weak dollar chase shares to new 11-month highs
[MKTS/GLOB]
* For closing rates of Indian ADRs
INADR
(Editing by Ranjit Gangadharan)