Indian shares rise; Tata Motors rallies as loss narrows

* NSE index up 0.42%, BSE index 0.46%

* Tata Motors hits over 3-month high

* Reliance Industries stock touches record high

BENGALURU, Oct 29 (Reuters) - Indian shares gained on Tuesday, as stock markets opened for trade after an extended three-day weekend, boosted by a sharp jump in Tata Motors Ltd after the automaker narrowed quarterly losses.

The broader NSE index was up 0.42% at 11,675.20 by 0430 GMT, while the benchmark BSE index was stronger by 0.46% at 39,428.91.

Broader Asian markets also rose, after optimism for a U.S.-China trade deal and hopes of fresh policy stimulus from the Federal Reserve buoyed investor sentiment, with MSCI’s broadest index of Asia-Pacific shares outside Japan adding 0.2%.

In the United States, the S&P 500 gained 0.56% to score a record closing peak, while the Dow rose 0.49% after U.S. President Donald Trump said on Monday he expected to sign a significant part of the trade deal with China ahead of schedule.

In domestic markets, the Nifty Auto index rose over 3% with Jaguar Land Rover owner Tata Motors jumping over 16% to its highest in over three months, after reporting a narrower quarterly loss on Friday.

Reliance Industries Ltd, the biggest Indian company by market value, hit a record high, climbing 1.5% in early trade.

The Nifty IT index inched up over half a percent with shares of IT services firm Tata Consultancy Services Ltd adding 1.57%.

Among the losers, shares of InterGlobe Aviation Ltd , parent of the country’s largest airline IndiGo, fell as much as 5.19%, after India’s air safety watchdog on Monday asked the airline for more checks on planes with Pratt & Whitney engines. Adding to the firm’s woes, the airline posted its biggest-ever quarterly loss on Friday.

Bharti Airtel Ltd’s stock fell as much as 4.02% after the telecom major deferred releasing quarterly results to Nov 14 and Vodafone Idea Ltd tumbled over 7%.

Both stocks have been under pressure after India’s top court last week upheld a demand by the telecoms department that wireless carriers pay 920 billion rupees ($13.01 billion) in overdue levies and interest. ($1 = 70.7400 Indian rupees) (Reporting by Chandini Monnappa in Bengaluru; Editing by Rashmi Aich)