Indian shares rise 2.2 pct; ICICI, Reliance gain

* Global rally, upbeat Singapore, Australia econ data help

* Monsoon seen improving, sentiment up

* ICICI Bank, Reliance Industries, L&T lead gainers
(Updates to mid-morning)

MUMBAI, July 14 (Reuters) - Indian shares rose 2.2 percent
on Tuesday, as encouraging data from Singapore and Australia
calmed fears about the global economy and a rally on Wall
Street overnight lifted sentiment across Asia.

Private-sector lender ICICI Bank (ICBK.BO), energy giant
Reliance Industries (RELI.BO) and engineering and construction
conglomerate Larsen & Toubro (LART.BO) led the gains in the
main index, a day after it fell to its lowest close in two
months.

"The market was technically oversold, and today it is
bouncing back," Arun Kejriwal, strategist at research firm
KRIS, said.

"It is being driven by the fact U.S. markets were up
yesterday, and Asia markets are up today after five days of
gloom all over the world."

Risk-appetite revived after bullish comments on the
financial sector's performance from prominent U.S. analyst
Meredith Whitney lifted hopes banks' quarterly results may be
stronger than expected.

In Asia, trade-hub Singapore's economy grew at an annual
rate of 20.4 percent in the second quarter, ending a recession
after four consecutive quarters of contraction. A key measure
of business conditions in Australia jumped to its best level in
nine months in June, also boosting confidence. [ID:nSYU006845]
[ID:nSIN495166]

By 11:09 a.m. (0539 GMT), the 30-share BSE index .BSESN
was up 2.2 percent at 13,688.03 points, with 27 stocks
advancing, after rising as much as 2.4 percent.

A poor start to monsoon rains, crucial for India's domestic
demand-led economy, and an annual budget that disappointed
investors who were expecting bold economic and financial
reforms had dragged down the market 9.4 percent last week, its
biggest fall in eight months.

But analysts say investors need patience as key policies
are increasingly made outside the budget process.

Farm minister Sharad Pawar said on Monday monsoon rains
were expected to improve this week, and if the forecast turns
out to be accurate there would be no cause for concern despite
below-normal rains so far this season.

In the near-term, the performance of overseas markets will
determine the direction Indian shares take, traders said.

Asian shares were higher, with Japan's Nikkei .N225 up
1.8 percent, while MSCI's measure of other Asian markets
.MSCIAPJ rose 2.8 percent.

ICICI Bank rose 5.6 percent to 667.50 rupees, while Larsen
gained 3.1 percent to 1,372.10 rupees.

Reliance Industries, India's largest-listed firm with the
most weight in the main index, climbed 1.8 percent to 1,780.05
rupees.

In the broader market, gainers led losers by more than 3 to
1 on relatively light volume of 85.9 million shares.

The 50-share NSE index was up 2.2 percent at
4,061.10.

MAIN TOP 3 BY VOLUME

* Suzlon Energy (SUZL.BO) on 5.4 million shares

* Unitech (UNTE.BO) on 4.6 million shares

* Reliance Natural Resources (RENR.BO) on 2.3 million
shares

STOCKS ON THE MOVE

* Axis Bank (AXBK.BO) rose 2.3 percent to 773.5 rupees
after it posted a better-than-expected 70 percent jump in
quarterly profit on Monday.

* Jewellery maker Gitanjali Gems Ltd (GTGM.BO) gained 5.3
percent to 97.60 rupees after it bought a majority stake in
U.S.-based diamond jewellery maker, Diamlink Inc.

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee rises on capital inflow hopes
[INR/]
* India bond yields up on U.S. cues, calendar awaited
[IN/]
* Yen steady ahead of U.S. earnings, economic data
[FRX/]
* Oil rises above $60 amid equities rally; worries linger
[O/R] * Asian shares find relief in Wall St rally
[MKTS/GLOB] * Wall St flies with banks after analyst's
comments [.N] * For closing rates of Indian ADRs

INADR (Reporting by Pratish Narayanan; Editing
by Ranjit Gangadharan)