Indian shares up on firm global mkts; metals rally

* Rise in line with global mkts gain on upbeat U.S.
earnings

* Investors sceptical after Tuesday's sell off

* Metals top gainers as base metal prices rise

(Updates to morning)

MUMBAI, Feb 3 (Reuters) - Indian shares were trading more
than 1 percent higher on Wednesday, led by gains in metals
makers on higher base metal prices and supported by rise in
world equities on upbeat U.S. corporate earnings.

Non-ferrous metals producer Sterlite Industries (STRL.BO)
and aluminium maker Hindalco (HALC.BO) rose 3.3 percent and 2.7
percent respectively, buoyed by a rise in base metal prices.

Tata Steel (TISC.BO), world's eighth-largest steel maker by
output, rose 3.3 percent to 591.20 rupees.

By 10:10 a.m. (0440 GMT), the 30-share BSE Index .BSESN
was trading up 1.4 percent at 16,389.53, with only one
component declining.

"We opened up because of firm global markets. But, I doubt
if we can stay positive through the day," said Nilesh Doshi,
president of equities at Techno Shares.

"All the results (earnings) are now out. There is no new
positive trigger to drive the market up," he said, adding,
investors were nervous ahead of the federal budget on Feb. 26.

"Historical precedent does not favor the market for the
next two months," Morgan Stanley said in a note.

"The markets are usually flat in the month ahead of the
budget and, in two out of three years, fall in the month
following it," it added.

Financials gained as investors placed bets on their
long-term outlook in a growing economy.

Top private lender ICICI Bank (ICBK.BO) and top lender
State Bank of India (SBI.BO) climbed 1.6 percent each, while
mortgage lender Housing Development Finance Corp (HDFC.BO) rose
2.2 percent.

In the broader market, gainers outpaced losers in a ratio
of 3.4:1, while 101 million shares changed hands on the Bombay
Stock Exchange.

The 50-share NSE index .NSEI was up 1.6 percent at 4,906.

STOCKS ON THE MOVE

* IT and infrastructure management services firm Infinite
Computer Solutions (India) Ltd (INFI.BO) opened 19.4 percent,
higher from its issue price of 165 rupees a share.
[ID:nBMB009787]. The stock was trading at 199 rupees.

* Hindustan Dorr Oliver (HDRR.BO) was up 1 percent at
177.30 rupees after the construction and civil engineering firm
said it has decided to foray into execution of nuclear power
plants and allied activities. [ID:nSGE6110I6]

MAIN TOP 3 BY VOLUME

* Fame India (FAME.BO) on 15.5 million shares

* Infinite Computer on 6.4 million shares

* Adani Power (ADAN.BO) on 4.2 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report [INR/]
* Indian bond report [IN/]
* Dollar turns lower as risk appetite picks up [FRX/]
* Oil falls below $77 as U.S. crude inventories jump [O/R]
* Asia shares rise on US cues; Aussie rebounds [MKTS/GLOB]
* Wall St climbs for 2nd day on solid earnings, data [.N]
* For closing rates of Indian ADRs INADR
(Reporting by Ami Shah; Editing by Malini Menon)