Indian shares flat; Infosys down, Reliance recovers

* Market lacks Asian cues, local triggers

* Infosys down on profit taking by traders

* Reliance up after falling 2 pct in early deals
(Updates to afternoon)

MUMBAI, Dec 21 (Reuters) - Indian shares were flat in early
afternoon trade after a choppy session on Monday amid muted
cues from Asian markets and lack of buying interest into the
end of year as foreign funds wind down their activity.

IT major Infosys Technologies (INFY.BO) dropped 0.8 percent
as traders booked profits, after the recent rally. The stock is
still up 5.1 percent in the month.

Top mobile operator Bharti Airtel (BRTI.BO) declined 1.3
percent, hurt by tariff wars and growing competition in the
sector.

Energy giant Reliance Industries recovered and was up 1
percent after declining 2 percent in early deals.

"There is a technical bounceback in Reliance. There was
strong support for the stock at around 990 rupees," said Kunal
Sukhani, manager of institutional equities at Asian Markets
Securities.

The stock has underperformed in December, on the back of
uncertainty over its bid for LyondellBasell [ACCEIN.UL] and its
court case with Reliance Natural Resources RNRL.BO. It is
down 4 percent this month, while the main index .BSESN has
shed 1.3 percent.

At 12:47 p.m. (0717 GMT), the 30-share BSE Index .BSESN
was up 0.01 percent at 16,721.33, with 16 components advancing.

"Market had to consolidate. There's nothing big to worry.
People are concerned about the likely interest rate hike after
the inflation figures," said Neeraj Dewan, director of Quantum
Securities.

"Global markets are also not going anywhere," he added.

Bank stocks rose after losing ground last week. The sector
index .BSEBANK was up 0.3 percent, but still down 4.7 percent
this month.

Leading lender State Bank of India (SBI.BO), ICICI Bank
(ICBK.BO) and HDFC Bank (HDBK.BO) were up 0.3 percent each.

In the broader market, gainers outpaced losers in the ratio
of 1.5:1 in a volume of 170 million shares.

The 50-share NSE index .NSEI was down 0.1 percent at
4,980.60.

STOCKS ON THE MOVE

* Indiabulls Financial Services Ltd (IBUL.BO) was down 1.8
percent at 126.50 rupees, after it and France's Societe
Generale (SOGN.PA) agreed to end their life insurance joint
venture in India. [ID:nBMB009283]

* Nava Bharat Ventures (NABV.BO) rose 5.3 percent to 398
rupees. The company said its Singapore unit acquired 65 percent
stake in Zambia-based Maamba Collieries for an initial
acquisition price of $26 million. [ID:nBMB009285]

MAIN TOP 3 BY VOLUME

* Unitech (UNTE.BO) on 4.4 million shares

* Suzlon Energy (SUZL.BO) on 2.7 million shares

* IFCI (IFCI.BO) on 2.3 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report [INR/]
* Indian bond report [IN/]
* Dollar slips vs euro but near 3-month highs [FRX/]
* Crude inches down as Iran-Iraq tension eases [O/R]
* Asian shares firm, dollar keeps footing [MKTS/GLOB]
* Wall St gains in choppy trade; tech lifts Nasdaq [.N]
* For closing rates of Indian ADRs INADR
(Reporting by Ami Shah; Editing by Malini Menon/John Mair)