India stx up 1 pct, Larsen gains after share sale

* Shares buck Asian markets, Wall Street drop

* Larsen gains upto 1.5 pct on Satyam share sale

* Liquidity supports market, but analysts cautious

(Updates to mid-morning)

BANGALORE, Nov 13 (Reuters) - Indian shares rose more than 1 percent despite a choppy morning session on Friday, helped by gains made by infrastructure play Larsen & Toubro (LART.BO) after the firm sold off a third of its stake in outsourcing firm Mahindra Satyam (SATY.BO). Analysts said the undertone of the market was cautious after concerns about consumer spending and strength of the recovery in the world's largest economy hit Wall Street, snapping a six-day winning streak, and pulling down the Asian markets.

Shares in engineering and construction major Larsen & Toubro rose as much as 1.5 percent after it sold 27 million shares in a block deal in Mahindra Satyam at 114.90 rupees each.

The Larsen shares came off later to trade 1.1 percent higher at 1,658.10 rupees. Mahindra Satyam was down 4.5 percent at 112.20 rupees, topping the volume chart with 39 million shares changing hands. At 11:52 a.m. (0622 GMT), the 30-share benchmark index .BSESN was up 0.94 percent at 16,852.68, with 27 components gaining. The index opened little changed, fell 0.2 percent and then rebounded to rise as much as 1.1 percent. "The market is being led higher by fresh liquidity infusion, but the action is limited to a few stocks and that raises doubts about its sustainability," said Arun Kejriwal, director at KRIS. "Investors should be very careful at these levels."

Foreign funds have moved more than $14.5 billion into Indian stocks so far this year, propelling the benchmark index up nearly three-quarters in the period, but some analysts have expressed concern about the rapid advance.

Shares in export-driven outsourcing companies such as Infosys Technologies (INFY.BO) rose 1.5 percent to 2,356.50 rupees, Tata Consultancy (TCS.BO) was up 2 percent at 667.30 rupees and Wipro (WIPR.BO) gained 1.3 percent to 633.50 rupees.

Information technology stocks have been in focus on hopes of a sharp revival in outsourcing services demand by overseas clients early next year. A fall in the Indian rupee to its lowest in a week also helped sentiment, traders said.

Ranbaxy Laboratories (RANB.BO) rose 0.8 percent to 415.40 rupees after the country's top drug maker by sales said it has received the World Health Organization pre-qualification for its Indinavir anti-retroviral AIDS drug.

In the broader market, 1,518 gainers outpaced 894 losers with 186 million shares changing hands on the Bombay Stock Exchange.

The broader 50-share NSE index was up 1.1 percent at 5,004.85.

STOCKS ON THE MOVE

* Software services firm Patni Computer Systems (PTNI.BO) was up 2.9 percent at 500.95 rupees. It is looking at a sequential revenue rise of more than 3 percent in the December quarter on winning larger deals, its CEO said. [ID:nBMA006420]

* Wire and Wireless (WIWI.BO) rose 7.8 percent to 22 rupees after the Indian government Thursday approved a policy allowing cable television companies to use "Headend-in-the-Sky" (HITS) broadcast technology to offer digital services, dealers said.