BSE Sensex up 1 pct as software firms lead

MUMBAI (Reuters) - The BSE Sensex rose more than 1 percent on Wednesday morning after a choppy start, led by software firms such as Infosys Technologies on hopes of improving demand and supported by gains elsewhere in Asia.

Software companies gained ground after The Economic Times reported the president of industry body Nasscom expected the industry to grow 4-7 percent in the current fiscal year and return to growth of more than 10 percent next year.

At 11:52 a.m. (0622 GMT), the 30-share BSE Index was up 1.02 percent at 16,608.88, with 23 components gaining.

"I think the market is moving up purely on liquidity as global cues are supportive. But as such, it is fairly priced at current levels," said Rajen Shah, chief investment officer at Angel Broking.

The benchmark fell 0.35 percent on Tuesday, after rising 7.1 percent over the previous four sessions.

It has risen more than 70 percent this year as foreign funds bought a net $14.5 billion of equities, and some investors have expressed concern about the rapid advance.

Top software firm Tata Consultancy rose 2.2 percent, second-ranked Infosys Technologies was up 2.5 and third-ranked Wipro climbed 3.1 percent.

Top bank State Bank of India led the losses, as traders locked in gains after the recent rally. It was down 1.1 percent after rising 10.7 percent in three previous sessions.

Second-ranked ICICI Bank was up 1 percent at 903.70 rupees. On Tuesday, its chief executive said bad loans had peaked and loan quality should improve.