INFOSYS trips in Indian shares

* Index at 6-mth closing high after best run in 1-½ yrs

* Revived global risk appetite helps; Reliance, L&T, banks up
* Infosys forecasts first drop in annual rev; outsourcers fall (Updates to close)
MUMBAI, April 15 - Indian shares shrugged off a shaky start on Wednesday and rallied for an eighth consecutive session, in their longest winning streak in 1-½ years, as robust risk appetite helped beat back earnings outlook concerns.
The rise took the main index up 2.9 percent to its best close in six months as it ended above 11,000 for the first time since mid-October.
Blue-chip outsourcer Infosys Technologies almost halted the rally when it forecast its first decline in annual revenue as outsourcing demand from overseas clients slowed in a harsh economic climate. [ID:nBOM471257]
Gains in energy giant Reliance Industries , engineering conglomerate Larsen & Toubro and leading lenders State Bank of India and ICICI Bank powered the main index higher.
The 30-share BSE index <.BSESN> rose 317.51 points to 11,284.73, its best close since Oct. 14. The benchmark has gained almost 18 percent over eight sessions, its longest run of gains since September 2007 when it climbed for 11 sessions in a row.
"The momentum in the market is clearly very high. The earnings numbers have more or less been factored into the market," Harendra Kumar, head of research at Centrum Capital, said.
Shares in Infosys, the country's second-largest outsourcer, ended down 2.7 percent at 1,370.80 rupees, its lowest close since March 31, after falling as much as 7.7 percent at one stage as the company's forecast dampened investor confidence.
The company's results, which came before the market opened, initially drove the BSE index down 2.3 percent.
Twenty-two of the index components rose while in the broader market, gainers led losers in the ratio of more than 4.5:1 on heavy volume of 695.3 million shares.
Even though there is uncertainty surrounding the political outlook ahead of month-long general elections starting on Thursday, foreign funds are pouring money on brightening signs of a sustained recovery in the global economy, traders said.
"Given that the bad news around the world is dissipating, emerging markets are rallying again. And India is getting the importance that it is due," Kumar said.
Foreign funds had pulled more than $13 billion from the Indian market in 2008, dragging shares down by more than half. They have been net sellers of about $1.2 billion this year, but were small net buyers of stocks in March, and have bought $416 million in the first two weeks of April.
"This is mainly a liquidity driven rally. Valuations were so beaten down that this recovery needed to happen," Kumar said. He said the main index could reach as much as 12,700.
Reliance Industries, which has the biggest weight in the index, rose 3.2 percent to 1,825.55 rupees. Larsen, which lost the bid to buy a controlling stake in fraud-hit outsourcer Satyam Computer on Tuesday, rose 6.7 percent to 878.80 rupees.
Analysts had warned the possible acquisition would distract Larsen from its core engineering and construction business.
Private-sector lender ICICI Bank gained 6.8 percent to 443.70 rupees, while government-run State Bank of India firmed 6.4 percent to 1,295.60 rupees.
Top IT-services firm Tata Consultancy Services fell 2.4 percent to 577.55 rupees, while third-largest Wipro ended flat at 269 rupees, with investor sentiment towards the sector souring after Infosys' glum forecast.
"The amount of uncertainty today is unprecedented. This is probably one of the worst economic environments we have seen in our lifetime," Infosys Chief Executive S. Gopalakrishnan told reporters in Bangalore.
The 50-share NSE index <.NSEI> rose 3 percent to 3,484.15.
Asian stocks pulled back from six-month highs on Wednesday after the drop on Wall Street overnight. Japan's Nikkei <.N225> fell 1.1 percent, while MSCI's measure of other Asian markets <.MSCIAPJ> edged up 0.05 percent.
MAIN TOP 3 BY VOLUME
* Unitech on 42.5 million shares
* Reliance Natural Resources on 26.5 million shares
* Suzlon Energy on 18.4 million shares
STOCKS THAT MOVED
* SKF India rose 9.8 percent to 182.50 rupees after about 1.3 million shares, or 2.5 percent equity, changed hands in a block deal on the BSE at 170.25 rupees each.
* Pantaloon Retail India Ltd gained 3.2 percent to 190.55 rupees after it said it plans to raise 3.68 billion rupees through an issue of equities and warrants on a preferential basis. The firm also plans to spin off its fashion and retail divisions into wholly owned subsidiaries. [ID:nBOM476641]
* CMC Ltd jumped 51.2 percent to 571.75 rupees after the company reported late on Monday a 26 percent increase in its consolidated net profit for fiscal 2009 and higher dividend of 15 rupees per share. [ID:nBOM497226]
FACTORS TO WATCH * For technical analysis double click on www.reutersindia.net * Indian rupee rises to 1-½ month high as stocks gain [INR/] * Ample cash pushes Indian bond yields toward 3-wk low [IN/] * Euro recovers, yen slips as stocks trim losses [FRX/] * Oil rises above $50, eyes OPEC, US data [O/R] * UBS, data push stocks lower; buoys yen [MKTS/GLOB] * U.S. stock futures herald mixed open; CPI awaited [.N] * For closing rates of Indian ADRs.

Source : news.alibaba.com/article/detail/markets/100085645-1-indian-shares-up-8th-day%253B.html