Sensex edges higher; Infosys surges 6 percent

MUMBAI (Reuters) - The BSE Sensex edged higher on Friday, heading for a second consecutive session of gains, led by software services exporter, Infosys Ltd, which surged 6 percent after its December-quarter earnings beat estimates.

Infosys reported a 13 percent rise in its quarterly net profit, beating estimates, as it won more outsourcing contracts from Western clients. Shares in Infosys are on track to post their biggest single-day gain since Oct. 10.

Indexes were still headed for their biggest weekly falls in four weeks after shares slumped more than 3 percent on Tuesday, as a continued slide in oil prices roiled emerging markets.

 

But markets have steadily pared losses, helped by a recovery in Asian markets, although concerns remain given overseas investors sold a net 4.67 billion rupees ($74.91 million) worth of shares on Thursday, marking a third consecutive day of selling that totalled $487.9 million.

"I think corporate earnings this quarter, should be steady and Infosys was ahead of estimates. We do believe the market sentiment is good for the medium term," said Deven Choksey, managing director at KR Choksey Securities.

The benchmark BSE Sensex is up 0.37 percent at 27,371.09. It is down 1.7 percent this week.

The broader Nifty gained 0.43 percent to 8,269.35, falling 1.6 percent in the week.

Defensive pharmaceutical and healthcare stocks gained. Hindustan Unilever Ltd gained 3.8 percent, while Sun Pharmaceutical Industries added 1.2 percent.

However, ICICI Bank fell 1.4 percent, falling for the third time in the last four sessions, marking its worst weekly fall in the past 15 sessions. The stock gained 23.16 percent in the Oct-Dec quarter.

($1 = 62.3450 rupees)

(Reporting by Indulal PM; Editing by Anand Basu)