Indian shares up 0.4 pct; Reliance leads

* Reliance leads, market cheers bid for LyondellBasell

* Positive Asian markets help sentiment

* Telecom stocks down as tariff war heats up

(Updates to morning)

MUMBAI, Nov 23 (Reuters) - Indian shares rose 0.4 on Monday
morning, led by energy giant Reliance Industries (RELI.BO)
after it made an offer to buy a controlling interest in
U.S.-based bankrupt petrochemicals company LyondellBasell
Industries. [ID:nN21473364]

Reliance (RELI.BO), which has the largest weighting in the
index, was up 1.4 percent at 2,154.50 rupees.

"The difference between any other large acquisition and
this one is that this deal is being pursued at the time of a
downcycle in petchem space, making valuations cheap," said
Vaibhav Sanghavi, director of Ambit Capital.

"Also, Reliance has always had a comfortable balance sheet.
That, along with the synergies and existing liquidity is
helping the stock," added Sanghavi.

Reliance, the country's largest-listed firm, is offering
about $12 billion for control of LyondellBasell, according to
sources, and if successful it would be one of the largest
overseas acquisitions by an Indian company. [ID:nBOM114694]

At 10:22 a.m. (0452 GMT), the 30-share BSE Index .BSESN
was up 0.41 percent at 17,091.75, with 22 components gaining.

"I think we can hold on to the gains in the day as dollar
is weak for now. We should close in the green today," said
Gajendra Nagpal, CEO of Unicon Financial.

Positive Asian markets also helped sentiment, with MSCI's
measure of Asian markets other than Japan .MSCIAPJ rising 0.6
percent. Japanese markets were closed for a public holiday.

Telecom stocks declined as the tariff war in the sector
intensified after Tata Teleservices [TATASL.UL] extending its
per-second billing scheme to roaming calls. [ID:nBOM194883]

Top mobile operator Bharti Airtel (BRTI.BO) dropped 2.7
percent to 280.85 rupees, while rival Reliance Communications
(RLCM.BO) shed 0.9 percent to 172.25 rupees.

In the broader market, gainers were more than double the
number of losers on a volume of 51 million shares.

The 50-share NSE index .NSEI was up 0.5 percent at
5,079.05.

STOCKS ON THE MOVE

* Private refiner Essar Oil (ESRO.BO) was up 1.8 percent at
139.15 rupees. The Economic Times reported on Saturday that
Royal Dutch Shell (RDSa.L) was in talks to buy 10 percent in
the company, as part of a deal where Shell would sell three
European refineries to Essar. [ID:nBOM416496]

* Pratibha Industries (PRTI.BO) was up 3.3 percent at
270.95 rupees. The construction firm said its joint venture
with Gammon India (GAMM.BO) won an order worth 3.1 billion
rupees from the Bangalore Water Supply and Sewerage Board.
[ID:nBMB009128]

MAIN TOP 3 BY VOLUME

* Dena Bank (DENA.BO) on 3.3 million shares

* Suzlon Energy (SUZL.BO) on 2.4 million shares

* Vijaya Bank (VJBK.BO) on 2.2 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar turns tail as gold climbs to record
[FRX/]
* Oil tops $78 amid fresh Iran tensions
[O/R]
* Gold at record; resource plays boost stocks
[MKTS/GLOB]
* Wall St dips as investors fret about recovery [.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by John Mair)
((ami.shah@thomsonreuters.com; +91 22 6636 9246; Reuters
Messaging: ami.shah.thomsonreuters.com@reuters.net))
((If you have a query or comment on this story, send an email
to news.feedback.asia@thomsonreuters.com))

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