Indian shares rose 0.87 percent on Tuesday, their fifth day of gains, led by improving liquidity and news that the Asian Development Bank had hiked its growth forecast for India, dealers said. The benchmark 30-share Sensex index rose 145.13 points to 16,886.43, a near 16-month high. The markets re-opened after a holiday Monday and buying was strong initially following an ADB projection that India's economy would expand by six percent in 2009, up from a five percent estimate given in March. The ADB said India would grow by seven percent in 2010, a revision from its earlier forecast of 6.5 percent. Investor sentiment was also upbeat as analysts forecast better-than-expected second-quarter earnings from Indian companies which will begin reporting next month, starting with software giant Infosys Technologies. Also Tuesday, media reports said that stock market regulator the Securities and Exchange Board of India (Sebi) was planning to further relax rules governing foreign portfolio investment, which could boost inflows into the country. Foreign funds have bought equities worth 9.85 billion dollars so far this year, official data showed last Friday, after selling shares worth 8.38 billion dollars during the same period last year. 'Positive news flow kept the markets strong. We could see intraday corrections in coming days,' said Alex Mathews, head of research with Geojit BNP Paribas Financial Services. Gainers led losers 1,605 to 1,176 on turnover of 54.37 billion rupees (1.12 billion dollars). The rupee rose marginally against the dollar to 48.17 from 48.18, but fell against the euro to 70.95 from 70.92. India's largest software exporter TCS rose 17.05 rupees or 2.92 percent to 600.8 on expectations of positive statements from the US Federal Reserve, which starts a two-day monetary policy meet later Tuesday. India's top software exporters have their top clients based in the US. India's largest car maker Maruti Suzuki India gained 18.35 rupees or 1.12 percent to 1,659.2, while auto and farm equipment maker Mahindra and Mahindra rose 3.25 rupees or 0.37 percent to 888.25 on hopes of higher sales in India's festive season, which commenced this week. India's auto companies have seen a spurt in sales in recent months, led by strong demand across Europe. India's biggest mobile phone firm Bharti Airtel fell 14.5 rupees or 3.29 percent to 426, on media reports Tuesday that it was making last-minute concessions to secure a deal with South Africa's MTN Group. The media has speculated that the deal could run into trouble due to regulatory norms, which may not allow for the dual-listing of the merged company on both the Indian and South African stock exchanges. The deadline for the deal talks is September 30. 