Indian shares rise 1 pct; Reliance, Bharti fall

* Global rally spurs rise in Indian shares

* Reliance Inds, Bharti, ONGC down after Q2 results
(Updates to mid-morning)

MUMBAI, Oct 30 (Reuters) - Indian shares edged higher on
Friday morning, buoyed by a rally in global markets after U.S.
gross domestic product data showed the world's biggest economy
returned to growth last quarter.

Banks led the gains, after being battered earlier this week
after the central bank raised their provision ratio for bad
debts, a move which could hurt its profits, dealers said.

However, the gains were limited as Reliance Industries
(RELI.BO), Oil & Natural Gas Corp (ONGC.BO), Bharti Airtel
(BRTI.BO) and Tata Power (TTPW.BO) dragged, after they
announced September quarter results.

A sluggish global economy has slashed oil refining margins
of energy giant Reliance Industries, leading to a fourth
straight fall in profit and adding to concerns for investors
already unnerved by a gas-pricing dispute. [ID:nBOM410990]

"RIL still faces uncertainties on three counts taxation on
oil & gas business (clarity still awaited), gas pricing
including the court case with RNRL; and global refining
margins," Edelweiss Securities said in a note.

The stock, which has the heaviest weight on the Sensex, was
down 1.7 percent at 1,970 rupees.

By 11:58 a.m. (0628 GMT), the 30-share BSE Index
was trading up 1.06 percent at 16,223.53, with 23 of its
components gaining.

"Its more like a relief rally," said R. Ganesh, director of
Systematix Shares.

"I don't think we are ready to go to earlier highs. Market
(Nifty) will find it difficult to move beyond 5,000 Nifty
level, as valuations are still stretched," added Ganesh.

The banking sector index .BSEBANK rose nearly 3 percent
after falling 7.7 percent in previous three sessions, as the
central bank announced its quarterly monetary policy.

Sector leader State Bank of India (SBI.BO) rose 3.5 percent
to 2,272 rupees while private lender ICICI Bank (ICBK.BO)
climbed 2.6 percent to 791.35 rupees.

Sterlite Industries (STRL.BO) rose 6.8 percent to 797
rupees, after it said its unit Sterlite Energy filed to raise
up to 51 billion rupees though an initial public offer.

Top mobile operator Bharti Airtel was down 3.9 percent at
299.95 rupees, after it reported a 13 percent rise in quarterly
profit that lagged analysts' estimates as an increasing number
of low-paying users and price competition weighed.
[ID:nBMA006290]

State-run explorer Oil & Natural Gas Corp was down 0.2
percent at 1,163.15 rupees, after it reported a
lower-than-expected 5.8 percent rise in quarterly net profit.
[ID:nBOM399276]

Power producer Tata Power shed 1.5 percent to 1,383 rupees,
after it said its September quarter net profit dropped by 28
percent. [ID:nBOM176710]

In the broader market, gainers were more than thrice the
losers in a volume of 145 million shares.

The 50-share NSE index was up 1.6 percent at 4,824.

STOCKS ON THE MOVE

* Grasim (GRAS.BO) rose 4.9 percent to 2,238.15 rupees
after the firm, which makes cement, textiles and chemicals,
said its July-September net profit rose 61 percent.
[ID:nBMA006287]

* JSL Ltd (JIST.BO) was up 6.5 percent at 104.30 rupees
after India's top stainless steel maker swung to a net profit
of 627.5 million rupees, from a net loss of 686.4 million last
year.[ID:nBMB008939]

MAIN TOP 3 BY VOLUME

* Indiabulls Power (INDP.BO) on 58.4 million shares

* Unitech (UNTE.BO) on 5.3 million shares

* Balrampur Chini (BACH.BO) on 3.6 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dlr drifts as more data in focus after GDP cheer
[FRX/]
* Oil steadies below $80 after jumping on U.S. GDP data
[O/R]
* Asia stocks rebound from slide, earnings help
[MKTS/GLOB]
* Wall St jumps as GDP growth spurs optimism
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by Jarshad Kakkrakandy)