Indian shares edged 0.3 percent

 * Correction seen due after sharp rally - KRIS

 * Reliance recovers after steep fall on Fri



 (Updates to close)	

 By Ami Shah	

 MUMBAI, July 4 (Reuters) - Indian shares edged 0.3 percent

higher on Monday, tracking world equities as risk appetite

returned after Greece avoided an early default and on signs

China's economy was not heading towards a sharp slowdown, but

traders maintained a cautious view.	

 Energy major Reliance Industries was among the

biggest gainers, with a 0.8 percent rise, after falling 4.1

percent on Friday.	

 The retail subsidiary of the conglomerate has appointed two

former Wal-Mart executives to run the operations, the

Economic Times reported on Monday, ahead of an expected opening

up of the retail sector. 	

 The 30-share BSE index firmed 0.28 percent, or

51.68 points, to 18,814.48 points, extending last week's 2.9

percent gain. Nineteen of its components closed in the green.	

 "We have run the upward course, and a correction looks due,"

said Arun Kejriwal, director of research firm KRIS.	

 Traders said a revival in foreign fund buying underpinned

India -- one of the world's worst performing major markets this

year-- in the last few sessions, but profit booking could come

in now.	

 "People are waiting for first-quarter results. Any spike on

good news will be used to sell," Kejriwal said.	

 Investors massively returned to emerging market equity funds

in the week ended June 29 as hopes that Greece would avoid

imminent bankruptcy encouraged risk taking, fund tracker EPFR

Global said on Friday. 	

 Inflows into their funds hit a 12-week high during the week,

after three consecutive weeks of outflows, according to the

fund-tracker.	

 Data from Nomura showed foreigners preferred Indian equities

the most in Asia in the week to July 1, and pumped in $1.1

billion. 	

  The 50-share NSE index gained 0.4 percent to end at

5,650.50.	

 Gainers thrashed losers in the ratio of 2.1 to 1 on the NSE,

on a volume of 549 million shares, lower than the 90-day daily

average volume of 589 million shares	

 Top-listed real estate firm DLF jumped 6 percent to

233.60 rupees, after RBS upgraded the stock to "buy" from "sell"

and raised its target price, citing improving cash-flow and a

ramp-up in sale of its non-core assets. 	

 "We believe the worst is over for DLF and expect a gradual

recovery," RBS analysts said in a note late on Friday.	

 The banking sector index rose 1.1 percent,

attempting to cover up for a poor show so far this year. It is

still down 3.5 percent in 2011.	

 Leading lenders State Bank of India , ICICI Bank

 and HDFC Bank gained between 0.5 percent and

1.2 percent.	

 The MSCI all-country world stock index rose

0.4 percent by 1015 GMT, while emerging market equities

 firmed 1 percent.	

 STOCKS THAT MOVED	

 * Sugar producers, including Shree Renuka Sugars ,

Dhampur Sugar Mills and Bajaj Hindusthan ,

gained between 4.1 and 6.7 percent, after a report the

government may discuss easing restrictions on the sector.

 	

 * UltraTech Cement and Jaiprakash Associates

 rose 1.5 percent and 1.7 percent, respectively, after

they reported higher June cement shipments.

 * Hotel Leelaventures rose 2.4 percent to 41.90

rupees after it said on Saturday it plans to expand its property

in Goa by adding 20 rooms and bring its total to 206 rooms.

 	

	

 TOP 3 MAIN STOCKS BY VOLUME ON NSE	

 * Lanco Infratech on 23.3 million shares	

 * Unitech on 17.1 million shares	

 * DLF on 15.3 million shares	

	

 FACTORS TO WATCH	

 * For technical analysis click on www.reuterstechnicals.net	

 * India bond report                                      	

 * India rupee report                                    	

 * Euro rises to five-week high versus Swiss franc       	

 * Oil steadies on Asia equity, Greek debt concerns weigh 	

 * Stocks at 4-1/2 week high as risk back in favour 	

 * Fireworks wrap up Wall St's best week in 2 years        	

 * For closing rates of Indian ADRs                     	

 (Reporting by Ami Shah; Editing by Aradhana Aravindan)

 	

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