Stronger Capita and easyJet lift Britain's FTSE 100

* Capita (LSE: CPI.L - news) up after bullish outlook

* EasyJet (Other OTC: EJTTF - news) boosted by dividend pledge and outlook

* Pullback in crude caps gains (ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details)

By Sudip Kar-Gupta and Alistair Smout

LONDON, May 10 (Reuters) - Britain's leading stock index rose on Tuesday, lifted by gains for shares in budget airline easyJet and support services group Capita.

Capita rose 5.7 percent, making it the top FTSE 100 gainer, after the company expressed increasing confidence over its 2016 prospects.

The firm rallied, having hit its lowest levels in two years earlier in the week.

"After such a good start some are understandably asking whether the company is staying cautious at this early stage," said Mike van Dulken, head of research at Accendo Markets.

"Potential for expectations to be beaten and guidance raised as the year progresses may have presented an opportunity to buy in around the lows."

EasyJet gained 2 percent. Even (Taiwan OTC: 6436.TWO - news) though the airline reported a half-year loss, traders and analysts were reassured by its assertion that it was on track to meet market expectations for full-year results, and were encouraged by its plans to boost its dividend payout ratio.

"The dividend payout ratio has been lifted from 40 percent of post-tax income to 50 percent, reflecting strong cash flows," Cantor Fitzgerald analysts wrote.

The blue-chip FTSE 100 index was up 0.2 percent at 6,129.24 points by 1156 GMT. Gains were cut after U.S (Other OTC: UBGXF - news) . crude oil turned lower following a positive open, hindering the energy sector.

The FTSE 100 has lost nearly 2 percent this year and is some 14 percent below a record high reached in April 2015, with concerns about a China-led global economic slowdown having hit world stock markets.

Traders expressed caution over the FTSE's near-term progress before a June 23 referendum on Britain's membership of the European Union, although many still expect the "Yes" voters to prevail.

"I foresee the FTSE making a small recovery to 6,500 when the Brexit vote is finally put to bed and we stay with the EU," InterTrader chief market strategist, Steve Ruffley, said.

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Reporting by Sudip Kar-Gupta; Editing by Richard Balmforth)