Indian shares rise, banks up; L&T, Reliance drag

* Shares rise on positive cues from Asia, U.S.

* Banks lead gainers, after losses in 4 sessions

* L&T, Reliance Inds amongst top losers

(Updates to morning)

MUMBAI, Oct 23 (Reuters) - Indian shares rose 0.8 percent
on Friday, helped by a rise in their regional peers, and
leading lenders ICICI Bank (ICBK.BO) and State Bank of India
(SBI.BO) recouped some of their losses from the three prior
sessions.

Banks bounced back, after being battered in the last four
sessions and the sector index .BSEBANK was up 1.3 percent.

State Bank was up 1.3 percent at 2,355 rupees, while ICICI
Bank climbed 1.7 percent to 905.80 rupees.

By 11:35 a.m. (0605 GMT), the 30-share BSE Index .BSESN
was trading up 0.68 percent at 16,904.10, with 25 of its
components gaining. It rose to as much as 17,006.77 in early
deals.

"I think the market should rest for some time. There is no
clarity on FY11 earnings. It is all guesswork that's
happening," said Nilesh Doshi, president of equities at Techno
Shares.

"In the near term, market could either be rangebound or we
may see a downward bias, as post earnings there is no major
trigger to drive it up," he said.

Engineering and construction major Larsen & Toubro
(LART.BO), extended its losses, and was down 1.9 percent at
1,577.95 rupees, as its September quarter sales lagged
forecasts and it said funding delays were still slowing some
projects [ID:nBOM463101]

Energy giant Reliance Industries (RELI.BO), dragged 0.7
percent lower to 2,118.40, after a Citigroup report raised
concerns that rupee strength may impact its earnings
"meaningfully", dealers said.

"Strength in INR (rupee) poses downside risks to earnings
through refining exports, landed cost benchmarking of domestic
petchem sales, and dollar-denominated KG (Krishna-Godavari)
revenues," Citigroup Global Markets said in a note on Thursday.

The country's third-largest software services exporter
Wipro (WIPR.BO) climbed 1.6 percent to 586 rupees after it
said late on Thursday it won a 10-year technology outsourcing
contract from the airport in national capital New
Delhi.[ID:nBOM196884]

Around 135 million shares changed hands, with gainers
beating losers in the ratio of 2.4:1.

The 50-share NSE index .NSEI was up 0.67 percent at
5,021.95.

STOCKS ON THE MOVE

* Asian Paints (ASPN.BO) rose as much as 6.16 percent to
1,624.45 rupees after the country's largest paint maker said
its July-September net profit more than doubled to 2.7 billion
rupees. [ID:nBOM200196]

The stock was up 4.8 percent at 1,604 rupees.

* Lender for infrastructure projects Infrastructure
Development Finance Co (IDFC.BO) was up 2.4 percent at 160
rupees, after it said its September quarter net profit rose
19.5 percent. [ID:nBMB008757]

MAIN TOP 3 BY VOLUME

* Ispat Industries ISPT.BO on 3.3 million shares

* Unitech (UNTE.BO) on 2.5 million shares

* Cranes Software (CRAS.BO) on 2.4 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar slips as euro options act as magnet
[FRX/]
* Oil steady on flat dollar, technical consolidation
[O/R]
* Asia shares rise on earnings, dlr slides
[MKTS/GLOB]
* Financials drive Wall St higher; Amazon up late
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by Jarshad Kakkrakandy)