INDIA STOCKS-Indian shares snap four-day losing run in low-volume session

BENGALURU, Dec 26 (Reuters) - Indian shares rose for the

first time in five days in a low-volume session on Monday, with

the rebound helped by mixed U.S. data that bolstered bets of

smaller interest rate hikes by the Federal Reserve. The Nifty 50 index was up 1.08% at 17,999.85 by

midday, and the S&P BSE Sensex gained 1.08% to

60,494.09. The Nifty fell 3.3% in the previous four sessions and

dropped below the psychologically key 18,0000 mark on Friday. "I expect the markets to recover sharply as the punishment

meted out on Thursday and Friday was unwarranted", said G

Chokkalingam, founder and head of research at Equinomics

Research and Advisory. Data late on Friday showed U.S. personal income rose more

than expected last month, while consumer spending barely rose

and inflation cooled further, rekindling bets of smaller-sized

rate hikes from the Federal Reserve and improving risk appetite. However, Chokkalingam cautioned of low volumes. "Normally,

trading is thin this time of the year. Expect dullness in the

market as foreign institutional activity dies down as they go on

holidays." Forty-one of the Nifty 50 constituents advanced, as did most

of the major sectoral indexes. The advance was led by metal stocks, which rose

more than 2%, tracking the rise in metals on the weak dollar and

hopes of better demand after top consumer China's pledged to

boost its economy and real estate sector. Banking stocks also rose with and

rising over 1% and 3% respectively. Among individual stocks, Tata Motors rose over 2%,

set to snap a five-day losing run, after signing an electric bus

deal with Delhi Transport Corp. New Delhi Television Ltd rose over 4% after

founders Prannoy and Radhika Roy said they would transfer their

27.26% stake in the news broadcaster to the Adani Group. Index heavyweight Larsen and Toubro advanced 1.95%

after bagging orders worth 10 billion rupees and 25 billion

rupees.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio

D'Souza and Eileen Soreng)