Sensex up on value-buying, looks to break 6-day losing streak

MUMBAI (Reuters) - Indian stocks edged higher on Thursday and looked set to snap a six-session losing streak, as investors bought into beaten down shares such as Reliance Industries even as sentiment remained cautious ahead of the U.S. Federal Reserve meeting next week.

The tentative rebound from three-month lows this week also comes despite caution that a crucial tax reform would be cleared in the ongoing winter session of parliament, which ends on Dec. 23.

Markets are expected to remain under pressure as foreign investors continue to sell Indian shares ahead of the U.S. Federal Reserve's Dec. 16 meeting, where it is widely expected to raise interest rates.

Foreign investors have sold 46.51 billion rupees ($696.49 million) worth of Indian stocks already in December, on track to surpass the 70.74 billion rupees ($1.06 billion) sold in November.

Indian shares are set to record their first annual decline since 2011 with the broader Nifty losing about 7.78 percent and the Sensex losing 8.62 percent so far this year.

"People are waiting, they are not creating huge positions. You have FIIs selling in the cash market and no positive domestic factors," said Alex Mathews head of research at Geojit BNP Paribas.

The broader Nifty was trading 0.37 percent higher at 0737 GMT, heading towards its biggest single-day percentage gain since Nov. 27. The index rose as much as 0.51 percent earlier in the day.

The benchmark BSE Sensex gained 0.38 percent after rising as much as 0.56 percent earlier.

Gains were led by beaten down blue-chip stocks on Thursday.

Reliance Industries , an NSE index heavyweight, gained 2.4 percent after falling for four sessions in a row.

Housing Development Finance Corp rose 1.9 percent after losing 1.6 percent in the previous session.

Shares in Havells India jumped 10 percent after its board approved the sale of its Malta subsidiary.

($1 = 66.7775 Indian rupees)

(Reporting by Karen Rebelo in Mumbai; Editing by Sunil Nair)