* Hopes for global recovery increase, lift global equities
* Reliance Ind up, Reliance Nat falls ahead of case hearing
* Strong TCS result lifts outsourcers Infosys, Wipro (Updates to mid-morning)
MUMBAI, July 20 (Reuters) - Indian shares rose 1.6 percent on Monday as a slew of positive corporate earnings from across the world fuelled hopes for a revival in the global economy and lifted sentiment across Asia.
Energy giant Reliance Industries (RELI.BO), controlled by billionaire Mukesh Ambani, led the gains ahead of a Supreme Court hearing of a gas pact dispute between the company and Reliance Natural Resources RENR.BO, headed by estranged younger brother Anil.
Tata Consultancy Services Ltd (TCS.BO), the country's top IT-services firm by sales, surged 11.9 percent to 485 rupees after it beat forecasts with a 22 percent rise in quarterly profit. [ID:nBOM437752]
This also boosted other outsourcers, with No. 2 player Infosys Technologies (INFY.BO) gaining 4.5 percent to 1,951 rupees and smaller rival Wipro (WIPR.BO) climbing 8.5 percent to 466 rupees.
By 10:49 a.m. (0519 GMT), the 30-share BSE index .BSESN was up 1.6 percent at 14,975.03 points, with 22 stocks advancing.
Several factors, including strong global and local liquidity, a recovery in earnings growth and strong corporate balance sheets, will spur the market over the next 12 months, Morgan Stanley analyst Ridham Desai said.
"Indian equities are in a sweet spot. We would continue to buy the dips in the market," he said.
Last week, the benchmark rallied 9.2 percent -- the best among major markets in Asia -- as the government raised hopes for financial reforms and monsoon rains, crucial to India's domestic-demand powered economy, picked up after a weak start.
A spike in risk-appetite also underpinned the market, with record low global interest rates and trillions of dollars in stimulus spending appearing to help the world recover from the worst recession in 80 years.
On Monday, sources told Reuters U.S. lender CIT Group Inc (CIT.N) reached a tentative deal with bondholders for $3 billion in rescue financing, as it tries to avoid becoming the latest casualty of the global crisis, further boosting sentiment. [ID:nN19323064]
Reliance Industries, India's largest-listed firm with the most weight in the main index, rose 3.1 percent to 1,993.15 rupees.
Reliance Natural Resources was down 1.3 percent at 81.85 rupees, after newspaper reports said on Sunday the government has stepped into the simmering legal dispute between the firms. [ID:nBOM268653]
In the broader market, gainers led losers 2.5 to 1 on relatively light volume of 102.3 million shares.
The 50-share NSE index .NSEI was up 1.5 percent at 4,439.25.
Asian shares were higher on Monday, with MSCI's measure of Asian markets excluding Japan .MSCIAPJ rising 2.2 percent. Japan's Nikkei .N225 was closed for a public holiday.
MAIN TOP 3 BY VOLUME
* Satyam Computer SATY.BO on 10.7 million shares
* Reliance Natural Resources on 9 million shares
* Ispat Industries ISPT.BO on 4.3 million shares
STOCKS ON THE MOVE
* Apollo Hospitals Enterprise Ltd (APLH.BO) rose 5.9 percent to 584.25 rupees after its April-June net profit rose 53 percent.
* State-run Allahabad Bank (ALBK.BO) gained 8.9 percent to 86.55 rupees after it beat forecasts by posting an over threefold rise in April-June net profit. [ID:nBOM137009]
FACTORS TO WATCH * For technical analysis double click on www.reutersindia.net * Indian rupee up as import demand fades; stocks gain [INR/] * Indian bond yields rise ahead of large supplies [IN/] * Dollar and yen fall as stocks rally; euro at 3-wk high [FRX/] * Oil rises above $64, buoyed by Asian stocks rally [O/R] * Asia stocks hit 2009 high on earnings, CIT rescue [MKTS/GLOB] * Wall St scores best week in 4 months with IBM's help [.N] * For closing rates of Indian ADRs
INADR (Reporting by Pratish Narayanan; Editing by Ranjit Gangadharan)