Indian shares rise for 4th day; Dr Reddy's jumps

* BSE index up 0.2 pct; takes gains to 2.9 pct on week

* Trading choppy after rallying to 16-month highs

* Dr Reddy's climbs to 3-yr high on Glaxo talks report

* Autos race ahead on bullish sales outlook
(Updates to close)

MUMBAI, Sept 18 (Reuters) - Indian shares stretched a
winning streak to a fourth day on Friday, with rising foreign
portfolio inflows underpinning he market although there was
resistance after the market's rally to 16-month highs.

The 30-share BSE index .BSESN closed up 0.18 percent, or
30.19 points, at 16,741.30 points, after seesawing through the
day. It gained 2.9 percent on the week, its third rise in four
weeks. Eighteen of its components gained.

Drug maker Dr Reddy's Laboratories (REDY.BO) jumped 7.8
percent to its highest in more than three years after a
newspaper said Britain's GlaxoSmithKline (GSK.L) was in talks
to buy a 5 percent stake in the firm for about $150 million.
[ID:nLI144601]

A spokesman for the company said he would not comment on
the report.

The stock closed 3.6 percent higher at 865.45 rupees, after
rising as high as 900 rupees.

Bank stocks pulled back on profit taking. The sector index
.BSEBANK dropped 1.2 percent after rising 14.7 percent in 11
straight sessions.

"The market is consolidating for now. Today, it was just
profit booking ahead of the three-day weekend," said Deven
Choksey, managing director and CEO of K R Choksey Shares.

The market is closed on Monday for a public holiday.

The main BSE index has risen 6.9 percent this month, with
foreigners buying nearly $1 billion of stocks. For the year to
date, the benchmark is up 73.5 percent, helped by overseas
inflows of $9.3 billion.

In the broader market, gainers led losers in the ratio of
1.1:1, on good volume of 538 million shares.

Auto makers led the gainers, on improving demand for
vehicles, traders said.

Top car maker Maruti Suzuki (MRTI.BO) raced 5.2 percent to
1,640.85 rupees and leading utility vehicles maker Mahindra &
Mahindra (MAHM.BO) climbed 1.8 percent to 885 rupees.

Reliance Industries (RELI.BO) rose 0.6 percent to 2,098.70
rupees, after falling 4.45 percent on Thursday when the energy
giant sold 15 million shares raising about $660 million.
[ID:nHKG478528]

"This does not alter our positive outlook," Goldman Sachs
said in a note on the sale and reiterated its 'buy' rating on
the stock. It said the company's exploration and production
business would improve its earnings profile.

ICICI Bank (ICBK.BO) and HDFC Bank (HDBK.BO) shed 3.4
percent and 0.8 percent respectively. State Bank of India
(SBI.BO) bucked the trend and rose 1.7 percent.

The 50-share NSE index .NSEI gained 0.2 percent to
4,976.05.

"We should see rangebound trade next week as there are no
immediate triggers. Nifty has strong support at 4,750 levels in
the near term," said Ambareesh Baliga, vice-president, Karvy
Stock Broking.

Asian stocks were weak with Japan's Nikkei .N225
declining 0.7 percent, while MSCI's measure of other Asian
markets .MSCIAPJ was down 0.5 percent.

MAIN TOP 3 BY VOLUME

* Ispat Industries ISPT.BO on 19.2 million shares

* Reliance Natural Resources (RENR.BO) on 13.6 million
shares

* K S Oils (KSOI.BO) on 12.5 million shares

STOCKS THAT MOVED

* Thermax Ltd (THMX.BO) rose 5.6 percent to 554.65 rupees
after the engineering firm said it got a 10-billion-rupee order
for a power plant in the southern state of Andhra Pradesh.

* Software firm 3i Infotech Ltd (TIIN.BO) firmed 2.7
percent to 90.50 rupees after the firm said it had started a
5-billion-rupee qualified institutional placement.

FACTORS TO WATCH
* For technical analysis, double click on
www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Dollar rises broadly, off 1-yr low vs euro
[FRX/]
* Oil falls below $72 as equities slip, dollar rises
[O/R]
* U.S. stock futures signal dip; Palm in focus
[.N]
* Equity rally takes breather, dollar rises
[MKTS/GLOB]
* For closing rates of Indian ADRs
INADR
(Editing by Ranjit Gangadharan)