By Anirban Nag

BOMBAY (Reuters) - Indian shares rose on Thursday, supported by softer crude prices in a country which imports 70 percent of its oil, while the rupee eased marginally as the dollar steadied just below seven-month highs against the euro.

The benchmark 30-share Bombay index closed 0.5 percent higher at 6,478.94 points, with gains led by Bajaj Auto Ltd. and Infosys Technologies Ltd.

Bajaj rose 4.9 percent as dealers said India's second-largest motorbike maker, trading at a forward p/e of 14, could be rerated as demand was likely to be strong on buoyant consumer spending.

Bajaj also announced plans to invest 2 billion rupees on capacity expansion over the next 18 months and possibly buy a stake in the Philippines division of Kawasaki Motors.

Infosys, one of the priciest stocks on the exchange with a forward p/e of 18, rose 2.7 percent following gains in its U.S. shares overnight.

But traders said a recovery was unlikely until funds bought in a big way. Foreign funds have sold a net $382 million worth of shares since April 1, a tenth of their first quarter purchases.

"Investors still seem to want more triggers," said R. Parthasarathy, chief dealer at IDBI Capital Market Services.

"The market's fundamentals are very strong, and based on that, the longer-term outlook is very bullish. But till investors come in, the market will be range-bound."

The rupee closed weaker at 43.4775/4825 per dollar, after slipping off a 43.41 morning peak. It had closed Wednesday at 43.4650/4750.

Traders said demand for the U.S. currency from some foreign banks also appeared to indicate that overseas portfolio investors were probably still paring exposure to Indian stocks.

Federal bonds ended at one-month highs, buoyed by a fall in the price of oil, India's biggest import, and lower U.S. Treasury yields. The yield on the actively traded 12-year 8.07 percent bond eased 10 basis points to 7.2417 percent.