Indian shares rise ahead of derivatives expiry

* NSE index up 0.15 pct, BSE index 0.21 pct higher

* Traders awaiting cues from F&O expiry

* Sun Pharma rises on FDA nod

By Krishna V Kurup

March 22 (Reuters) - Indian shares rose on Thursday, led byenergy and financial stocks, ahead of the expiry of derivativescontracts and after the U.S. Federal Reserve raised interestrates while retaining its view for three hikes this year.

The Fed raised interest rates and forecast at least two morehikes for 2018, signalling growing confidence that U.S. tax cutsand government spending will boost the economy and inflation andlead to more aggressive tightening in future.

Given that some investors had expected it to project threemore rate hikes, the guidance was perceived by some as lesshawkish than anticipated, a positive factor for risk assets ingeneral, though analysts noted the Fed was upbeat on the economyoverall.

Domestically, traders are also awaiting cues from theroll-over of monthly derivatives contracts later in the day.

The broader NSE index was up 0.15 percent at10,170.60 as of 0538 GMT, while the benchmark BSE indexrose 0.21 percent to 33,204.48.

"It looks like a relief rally after the FOMC (Federal OpenMarket Committee) meeting. There is also some short-coveringtoday due to (F&O) expiry," said Vinod Nair, head of research atGeojit Financial Services.

"Going forward, if this relief rally continues in the U.S.,then domestically April will be better than what we have seen inMarch."

Energy stocks Oil and Natural Gas Corp Ltd gained2.4 percent while Reliance Industries rose 1.25percent on firmer oil prices.

Among financials, HDFC Bank Ltd rose 0.7 percentwhile Housing Development Finance Corp was up 0.6percent.

Among other gainers, drugmaker Sun Pharmaceutical IndustriesLtd rose 3.3 percent after the U.S. drug regulatorapproved a drug used for treating a skin disorder.

Jindal Drilling and Industries Ltd, which providesdrilling services to oil and gas explorers, posted its biggestintraday gain since June 2017 on reaching settlement for anarbitration award against the company.

Meanwhile, Hindustan Construction Co Ltd slumpedto its lowest since Aug. 31, 2016 on reports that its unitLavasa Corp is planning to declare bankruptcy due to challengesin raising money for project completion.(Reporting by Krishna V Kurup in Bengaluru; Editing by SunilNair)