Indian shares rise; L&T, Tata Motors gain

* Sensex up 0.35 pct; firmer Asian markets help
* Inflation seen easing; RBI policy next week key
* Suzlon up 5 pct after UK order win

(Updates to mid morning)
MUMBAI, Jan 13 (Reuters) - Indian shares rose on
Friday on hopes improving global risk appetite will boost
foreign fund inflows, while an expected easing in inflation
pressures could allow the central bank to unwind its tight
monetary policy.
Gains in Asian shares, which rose to a one-month high after
strong demand in Spanish and Italian debt sales helped ease euro
zone debt worries, also bolstered investor confidence, traders
said.
By 10:36 a.m. (0506 GMT), the benchmark 30-share BSE index
was up 0.35 percent at 16,094.39 points, with 20 of its
components in the green. The benchmark was one of the world's
worst performers in 2011, falling almost a quarter.
Engineering and construction conglomerate Larsen & Toubro
, truck and car maker Tata Motors and ICICI
Bank were among the gainers as buyers chased bargains.
Larsen & Toubro was up 2.2 percent, Tata Motors rose 3
percent and ICICI gained about 1 percent.
"We believe corporate results will not be bad because
advance tax payments were quite satisfactory," said R.K. Gupta,
managing director at Taurus Mutual Fund.
He said a bigger-than-expected rebound in November
industrial output, up 5.9 percent versus a 4.7 percent
contraction the month before, indicated the outlook was
improving.
Headline inflation for December probably fell to 7.50
percent, economists polled by Reuters said, helped by a drop in
food prices, after remaining above 9 percent for a year. The
data is due on Monday.
Deven Choksey, chief executive of brokerage K R Choksey,
said easing pressure on prices would pave the way for the
central bank to begin rolling back its tight policy.
The Reserve Bank of India, which raised interest rates 13
times between early 2010 and last October, is scheduled to
review policy on Jan. 24.
Wind turbine maker Suzlon Energy rose nearly 5
percent after it won a 20.5 megawatt order from the UK.
The 50-share NSE index was up 0.39 percent at
4,850.25 points.
In the broader market, gainers overwhelmed losers 1,013 to
314 on total volume of about 181.5 million shares.

STOCKS ON THE MOVE
* GVK Power and Infrastructure Ltd rose 3.6
percent after the company said its unit signed a road project
with the National Highways Authority of India. The project has a
30-year concession period..
* Diamond Power Infrastructure Ltd rallied more
than 7 percent after it said it received an order worth 483
million rupees for supply of power transformers..

MAIN TOP THREE BY VOLUME
* Suzlon Energy on 9.38 million shares
* Jaiprakash Associates on 7.9 million shares
* Lanco Infra on 6.67 million shares

FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* Euro steady, shows signs of stabilising vs AUD
* Oil falls on Iran embargo phase-in plan
* Shares gain as strong debt sales ease risk aversion

* Wall St ekes out gains for fourth day
* For closing rates of Indian ADRs
(Reporting by Aniruddha Basu; Editing by Ranjit
Gangadharan)

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