Indian shares rise; Reliance, SBI lead

* Reliance Inds up on report it may announce an overseas
buy

* SBI rises as it sells stake in UTI AMC
(Updates to morning)

MUMBAI, Nov 9 (Reuters) - Indian shares were up on Monday
morning, led by Reliance Industries (RELI.BO) and State Bank of
India (SBI.BO), but were off early highs as traders took
profits on a rise of nearly 5 percent over the past three
sessions.

Energy giant Reliance Industries was up nearly 2 percent at
1,995 rupees after a report it could be close to announcing a
$6 billion overseas buy. [ID:nBOM396979]

The stock rose as much as 3.1 percent in early deals.

"Given the unleveraged balance sheet size and treasury
shares held by the company, we continue to believe that
Reliance Industries is likely to remain in a high-growth
orbit," Angel Broking said in a note, and maintained a 'buy' on
the stock.

Top lender State Bank of India climbed 1.4 percent to 2,234
rupees, after it said it had entered into an agreement with T.
Rowe Price (TROW.O) to sell a 6.5 percent holding each in UTI
Asset Management Company and UTI Trustee Company.
[ID:nBOM135340]

Private lender ICICI Bank (ICBK.BO) firmed 0.5 percent and
HDFC Bank (HDBK.BO) rose 1.2 percent.

At 11:55 a.m. (0625 GMT), the 30-share BSE Index .BSESN
was up 0.16 percent at 16,184, with 14 components gaining.

It rose as much as 0.7 in early deals, extending a rise of
4.9 percent over the previous three sessions, but briefly
turned negative in late morning trade as profits were booked.

"Global cues have been good. The foreign investors'
interest in our country is good. So, there is no bad news as
such to pull the market down," said R. Ganesh, director of
Systematix Shares.

"A large upside is not likely, but at the same time a steep
downside is also ruled out. We will see range-bound trade for
some time unless there is a surprise from IIP (index of
industrial production) numbers " he added.

Industrial output data for September is due on Thursday.

On Sunday, the finance minister said the timing for winding
down stimulus measures would be decided when it was apparent
the economy is recovering, but there would be no more stimulus
measures. [ID:nBOM425910]

Prime Minister Manmohan Singh said on Sunday growth in the
next fiscal year, assuming a normal monsoon season, was
expected to be more than 7 percent compared with a 6.5 percent
forecast for the 2009/2010 fiscal year. [ID:nBOM425840]

In the broader market, gainers were nearly double the
number of losers as around 138 million shares exchanged hands
on the Bombay Stock Exchange.

The 50-share NSE index was up 0.2 percent at
4,803.20.

Asian shares rose as investors bet policymakers may keep
many stimulus measures in place until an economic recovery was
on more solid footing, after the U.S. unemployment rate surged
to a 26-1/2-year high. [ID:nHKG212024]

STOCKS ON THE MOVE

* Outsourcer Mahindra Satyam (SATY.BO) was up 1.9 percent
at 105.30 rupees. Its chief executive said worst was over for
the company and it had added 35 clients since mid-April, while
it lost just a handful. [ID:nSP416061]

* Hindustan Construction Co (HCNS.BO) rose 2.5 percent to
137.45 rupees. It said it expects its order book to rise by a
quarter to about 200 billion rupees ($4.3 billion) for the year
ended March 2010. [ID:nHKG445113]

*

MAIN TOP 3 BY VOLUME

* Suzlon Energy (SUZL.BO) on 7.3 million shares

* IFCI (IFCI.BO) on 6.8 million shares

* Unitech (UNTE.BO) on 4.3 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar under pressure, commodity currencies jump
[FRX/]
* US crude up $1 on hurricane concerns, weaker dlr
[O/R]
* Asia stocks, currencies rally as risk sought
[MKTS/GLOB]
* Wall St rises 3 pct for week on Friday's slim gain
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by John Mair)