INDIA STOCKS-Reliance, metals lift Indian shares after three-session selloff

Updates for markets close

By Bharath Rajeswaran and Vivek Kumar M

BENGALURU, March 5 (Reuters) - Indian shares rose on Thursday, snapping a three-session losing run, led by gains in Reliance and metal stocks while tracking a recovery in global risk appetite after a heavy selloff triggered by the Middle East crisis.

The Nifty 50 .NSEI rose 1.17% to 24,765.90 and the BSE Sensex .BSESN added 1.14% to 80,015.90.

The benchmarks had fallen about 4% each since Friday, with the decline this week triggered by the U.S.-Israel assault on Iran, which sent oil prices higher and kindled inflation concerns.

MSCI's broadest index for Asia-Pacific stocks outside Japan .MIAPJ0000PUS rose 2.6%, after sliding 8.6% over the past three sessions. MKTS/GLOB

Back home, 15 of the 16 major sectors logged gains. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 added 1.6% and 1.5%, respectively.

Nifty heavyweight Reliance Industries RELI.NS rose 3.3% after losing about 4.5% over the last three sessions, with brokerages JM Financial and CLSA saying that the recent correction in the stock was overdone.

"Today's market uptick is a temporary bounce, driven largely by Reliance rebounding from its sharp recent slide. As an index heavyweight, its snapback did most of the heavy lifting for the benchmarks," said Anita Gandhi, head of institutional business at Arihant Capital Markets.

Gains in Reliance powered energy .NIFTYENR and oil and gas .NIFOILGAS indexes 1.9% and 1.6% higher, respectively.

About 2,210 of the 3,336 stocks in the NSE universe advanced, outweighing the decline in 1,039 stocks.

"(Today's rise) is more due to attractive valuations after the recent selloff and on easing fears of any immediate squeeze on crude supply after the U.S. President's comments that crude flows will be protected," Gandhi said, adding that uncertainty in the markets is likely to persist due to the conflict.

Crude oil prices LCOc1 rose 1.9% to $82.9 per barrel as of 15:30 IST. Higher oil prices are typically negative for India, the world's third-largest crude importer. O/R

Among individual stocks, Hindalco Industries HALC.NS and National Aluminium NALC.NS jumped 3.6% and 6%, leading the metal index .NIFTYMET 2.3% higher, on rising aluminium prices due to supply concerns. This was after Aluminium Bahrain ALBH.BH halted shipments as the Strait of Hormuz faced a near-total shipping freeze. MET/L

(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy, Sonia Cheema and Harikrishnan Nair)

((vivekkumar.m@thomsonreuters.com))