Indian shares up 0.1 pct after rally; autos lead

* Mood cautious after Wednesday's steep rally

* Automakers lead on hopes robust sales will continue

* Infosys declines on profit sales after rally on Wed
(Updates to morning)

MUMBAI, Dec 24 (Reuters) - Indian shares were trading
marginally higher on Thursday morning, led by gains in
automakers, but the sentiment had turned cautious after the
steep rally in the previous session.

Auto companies rose on expectations that their robust
sales would continue in 2010.

Tata Motors (TAMO.BO) rallied 2.2 percent to 763.50 rupees
while Hero Honda HROH.BO rose 1.8 percent to 1,733.15 rupees.

"There are no signs the sales figures will let us down.
But, we need to watch the metals prices, as a spike in them
could increase the cost for automobile companies, Gajendra
Nagpal, CEO at Unicon Financial.

"It remains to be seen till what time auto companies can
sustain the pricing power they enjoy today," said Nagpal.

By 0545 GMT, the 30-share BSE Index .BSESN was up 0.13
percent at 17,253.15, with 21 of its components advancing.

"We had gone ahead of our peers yesterday," said Nagpal."
Today, the market is taking a breather."

On Wednesday, the main index jumped 3.23 percent since Oct.
17.

"This kind of pause is a good idea, as a steep run up like
that was not really justified and is not sustainable," he
added.

Telecom majors Bharti Airtel (BRTI.BO) and Reliance
Communications (RLCM.BO) got a lift from a strong rise in the
number of mobile phone users last month, gaining 0.1 percent
and 0.7 percent respectively.

Mobile firms in India added a record 17.65 million users in
November, taking total users in the world's fastest-growing
wireless market to 506 million. [ID:nSGEBN104]

Export-focussed software company Infosys Technologies
(INFY.BO) fell 0.4 percent on profit taking after it hit an
all-time high on Wednesday.

In the broader market, gainers led losers by 1.5 to 1 in a
volume of 138 million shares.

The 50-share NSE index .NSEI was up 0.2 percent at
5,153.95.

STOCKS ON THE MOVE

* Shriram Transport Finance Company (SRTR.BO) rose 6.3
percent to 465.95 rupees after the Economic Times reported
General Electric (GE.N) has sold its India transport financial
services business for 12 billion rupees to the company.
[ID:nSGE5BN029]

* Tea producer McLeod Russel (MCLE.BO) was up 1.8 percent
at 265.80 rupees, after it said on Wednesday its unit Borelli
Tea Holdings Ltd has signed a share purchase agreement with UK
firms James Finlay Ltd and James Finlay International Ltd for
acquiring a Ugandan tea firm. [ID:nSGE5BM0J3]

MAIN TOP 3 BY VOLUME

* Suzlon Energy (SUZL.BO) on 3.95 million shares

* NHPC (NHPC.BO) on 3.7 million shares

* IFCI (IFCI.BO) on 3.6 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report [INR/]
* Indian bond report [IN/]
* Dollar near highs but rally stalls before holiday [FRX/]
* Oil up above $77 on US crude stock drop, weak dlr [O/R]
* Asian shares rise, dollar rally stalled [MKTS/GLOB]
* Tech outshines market; home sales stifle Dow, S&P [.N]
* For closing rates of Indian ADRs INADR
(Reporting by Ami Shah; Editing by Tomasz Janowski)