* BSE ends 0.93 pct higher; NSE gains 0.99 pct
* Aug factory output and inflation also on traders' radar
* Unitech surges after settlement with Telenor
By Abhishek Vishnoi
MUMBAI, Oct 11 (Reuters) - Indian shares rose on Thursday asexpectations of better-than-expected earnings sent Infosys
and HDFC Bankhigher a day before theyreport results.
The focus has shifted to July-September earnings, which comeafter the government's slew of economic and fiscal measureshelped overcome worries about slowing growth and a continuedthreat of credit ratings downgrades.
India will unveil August factory data on Friday with aReuters poll showing a modest 1.1 percent growth annually.Industrial ouput data, along with inflation numbers on Monday,will be key in setting expectations for the central bank meetingat the end of the month.
However, optimism is growing that India's growth slump ispassing. A Reuters poll showed the economy will graduallyrecover over the next year, but the rate of expansion for thisfiscal year will still be the weakest in a decade.
"Infosys results are expected to be good... that will give apositive response to the market," said R.K. Gupta, managingdirector at Taurus Mutual Fund.
The market will closely watch corporate earnings and anyannouncements from the government, said Gupta.
The BSE index
rose 0.93 percent, or 173.65 points,to end at 18,804.75 points.The 50-share NSE index
gained 0.99 percent, or 55.90points, to end at 5,708.05 points, closing above thepsychologically important 5,700 level.
Infosys is expected to post a 24.9 percent rise in profit inthe quarter ended Sept. 30 to 23.8 billion rupees ($453.59million).
Infosys gained 1.16 percent, while HDFC Bank rose 1.12percent. Both are set to report their July-September earnings onFriday.
Fertiliser stocks, including Chambal Fertilisers andChemicals Ltd
, gained after the government raised theprice of urea, the most-used nitrogenous fertiliser, by 50rupees per tonne on Thursday.
However, traders said the hike was way below expectations,translating to less than 1 percent. Analyst said the hike wouldin no way support the margin improvement for fertiliser makers.
Rashtriya Chemicals & Fertilizers
rose 4.43percent, while Chambal Fertilisers and Chemicals Ltd gained 2.6percent.
Unitechshares gained 17.24 percent afterNorwegian telecoms group Telenor
dissolved its jointventure with the Indian company, hoping to distance itself froma scandal over the award of operating licences and set out a newplan to win business in the subcontinent.
shares gained 3.8 percent after falling11.91 percent in the previous three sessions.
The country's biggest property developer was likely tosuffer no material impact from accusations by anti-corruptionactivists of improper dealings, and the issue had been largelypriced in to the stock, UBS said in a report.
However, Suzlon Energy Ltd
fell 2.4 percent afterbondholders rejected a four-month extension on redemption ofmore than $200 million in overseas convertible bonds due onThursday.
Pharmaceutical stocks such as Cipla
fell onexpectations of a stricter drug pricing regime ahead of acabinet meeting next week to finalise the new pharmaceuticalpricing policy.
Cipla fell 1.9 percent while Lupin
ended 3.1percent lower.
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FACTORS TO WATCH
* Euro subdued by Spanish rating downgrade
* Oil pushes higher on Syria tension
* Spanish bonds inch towards 6 pct after downgrade
* Foreign institutional investor flows
* For closing rates of Indian ADRs
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(Additional Reporting by Manoj Dharra; Editing by SubhranshuSahu)
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