Indian shares edge up; Infosys, HDFC Bank gain

* BSE index gains 0.1 pct; extends rise to 3rd day

* Spent most of the day down on subdued world markets

* Reliance drops as no major announcement at AGM

* Banks supported by improving economic activity
(Updates to close)

By Ami Shah

MUMBAI, Nov 17 (Reuters) - Outsourcer Infosys Technologies
(INFY.BO: Quote, Profile, Research) and private sector lender HDFC Bank (HDBK.BO: Quote, Profile, Research) helped
Indian shares stretch a winning run into a third day on
Tuesday, after the market spent most of the day in negative
territory.

Investors took profits in many stocks following a more than
7 percent rally this month in tandem with world markets that
retreated from the previous day's 2009 highs. U.S. stock
futures indicated a lower opening on Wall Street.
[ID:nLH554605]

Infosys, the country's second-largest software services
firm, climbed 2 percent to 2,396.75 rupees on improving
prospects.

ICICI Securities said the current utilisation rate at 67
percent and composition of employees with less than three years
experience at an historic low of around 53 percent, earnings
visibility for Infosys was likely to remain superior versus
peers.

The brokerage maintained a buy rating on the stock and
raised its target price to 2,515 rupees.

Sector leader Tata Consultancy (TCS.BO: Quote, Profile, Research) climbed 3.7 percent
to 690.45 rupees while rival Wipro closed nearly 1 percent
higher at 642.30 rupees.

Reliance Industries (RELI.BO: Quote, Profile, Research) shed 0.7 percent to 2,133.75
rupees, as the energy major did not make any major announcement
at its annual general meeting.

"Most people were expecting a big announcement in terms of
an acquisition or a discovery. That didn't happen and the
excitement came off," said Jigar Shah, senior vice-president of
Kim Eng Securities.

Reliance said it plans an aggressive exploration campaign,
investments in petrochemicals and overseas acquisitions, but
did not elaborate on any particular plan. [ID:nBOM357621]

The main 30-share BSE index .BSESN closed up 0.1 percent,
or 18.14 points, at 17,050.65 points, with half of its
components rising. It had fallen as much as 0.9 percent during
trade.

"Our market is just reacting to what is happening
globally," said Shah.

Foreign funds have been a key driver for the market,
pouring in $15 billion so far this year and helping the
benchmark jump more than three-quarters in 2009.

The BSE index has risen 7.3 percent this month, erasing its
losses in October.

HDFC Bank (HDBK.BO: Quote, Profile, Research) climbed 1.5 percent to 1,747.35 rupees
as investors bet recovering economic activity would boost
earnings.

"Besides being a geared play on the economic cycle, banks
trade at a 22 percent valuation discount to the broader market,
which makes them an attractive buy," HSBC Bank said in a report
and added HDFC Bank was its top pick from the sector.

Top lender State Bank of India (SBI.BO: Quote, Profile, Research) closed 0.3 percent
higher while rival ICICI Bank (ICBK.BO: Quote, Profile, Research) ended little changed.

Energy explorer Oil & Natural Gas Corp (ONGC.BO: Quote, Profile, Research) fell 2.3
percent to 1,172.20 rupees as investors booked profits after it
rose 4.5 percent in the past two sessions.

In the broader market, gainers almost matched the number
of
losers on relatively low volume of 340 million shares.

The 50-share NSE index .NSEI closed up 0.1 percent at
5,062.25.

STOCKS THAT MOVED

* Engineering and construction firm Larsen & Toubro
(LART.BO: Quote, Profile, Research) rose 0.3 percent to 1,656.20, after sources said its
power unit had emerged the lowest bidder for a project in north
India. [ID:nBOM377206]

* Steel Authority of India Ltd (SAIL.BO: Quote, Profile, Research) rose 1.8 percent
to 187 rupees after its chairman said the state firm was
looking at acquiring licenses for coking coal mines abroad to
protect itself from fluctuating raw material prices.
[ID:nBMA006435]

MAIN TOP 3 BY VOLUME

* Suzlon Energy (SUZL.BO: Quote, Profile, Research) on 14.6 million shares

* Mahindra Satyam (SATY.BO: Quote, Profile, Research) on 11.3 million shares

* Unitech (UNTE.BO: Quote, Profile, Research) on 7.3 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report [INR/]
* India bond report [IN/]
* Aussie, Canadian dollars fall sharply vs US dollar [FRX/]
* Oil eases below $79 as dollar edges up [O/R]
* Stocks slip from 2009 highs; dollar above lows [MKTS/GLOB]
* U.S. stock index futures signal dip after rally [.N]
* For closing rates of Indian ADRs INADR
(Editing by Ranjit Gangadharan)