Indian shares snap two days of losses; Infosys recovers

* BSE gains 0.45 pct, NSE rises 0.5 percent

* Earnings, industrial production key this week

* United Spirits surges on hopes for Diageo deal

By Abhishek Vishnoi

MUMBAI, Oct 9 (Reuters) - Indian shares recovered on Tuesdayfrom two previous sessions of losses as dented stocks such asInfosys rose, while private banks such as ICICI Bank gained onhopes their quarterly earnings would prove resilient.

After India's slew of reform announcements - which werewelcomed by U.S. Treasury Secretary Tim Geithner in a visit toNew Delhi on Tuesday - investors are focusing on the approachingearnings reporting season.

Investors are also looking ahead to industrial output dataon Friday, with a Reuters survey of economists predicting amodest growth of 1.1 percent annually in August after barelygrowing at all in July.

India's economy has slowed sharply, spurring theInternational Monetary Fund to sharply lower its 2012 economicgrowth forecasts for the country to 4.9 percent from 6.1percent.

"Some rub-off is expected from the earnings season," saidDaljeet Singh Kohli, head of research at IndiaNivesh Securities.

"Broader view is one should be a buyer on dips. Whateverconfidence-building measures have been taken are sufficient tobring markets higher, and on top of that we have enoughliquidity both internationally and domestically."

The BSE index rose 0.45 percent, or 84.38 points,to end at 18,793.36 points after a fall of 1.8 percent in theprevious two sessions.

The 50-share NSE index rose 0.5 percent, or 28.6points, to end at 5,704.60 points, to close above thepsychologically important 5,700 level.

Infosys Ltd shares rose 1.9 percent after dropping4.7 percent over the previous four sessions.

The software service exporter is expected to post on Fridaya 24.9 percent rise in profit in the quarter ended Sept. 30 to23.8 billion Indian rupees ($453.59 million), according toThomson Reuters data.

Private banks rose on expectations their July-Septemberearnings will prove more resilient than their public sectorcounterparts.

ICICI Bank rose 1.1 percent, while HDFC Bank

gained 0.8 percent.

United Spirits Ltd gained 6.7 percent on risinghopes the Indian spirits maker will clinch a deal to sell astake to Diageo Plc .

Indian newspapers reported billionaire Vijay Mallya, whocontrols United Spirits, and rival liquor tycoon Kishore RajaramChhabria had reached a truce on their long-standing legaldispute over ownership of whiskey brand Officer's Choice, whichwas seen facilitating a potential deal with Diageo.

Maruti Suzuki shares gained 0.5 percent afterCitigroup said the auto maker was seeing signs of improvingdemand in the festival season, attributing the information toits recent conversations with the auto maker's management.

However, some other Indian auto shares fell after theFinance Ministry cut the rebates paid on certain types ofexports.

Shares in Bajaj Auto fell 0.4 percent, TVS Motors

fell 2.9 percent while Ashok Leyland lost0.6 percent.

Indian telecom stocks fell as operators face a totalsurcharge of at least $5.2 billion to continue using theairwaves, after a ministerial panel on Monday recommended thesector be charged for existing second-generation holdings basedon the price at an upcoming auction.

Idea Cellular shares fell 3.2 percent, whileBharti Airtel fell 1.9 percent.

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(Additional reporting by Manoj Dharra; Editing by Rafael Nam)

((abhishek.vishnoi@thomsonreuters.com)(+91 22 61807225)(ReutersMessaging)(abhishek.vishnoi.reuters.com@reuters.)(net))