Indian shares flip-flop; Infosys leads techs up

* Monsoon, economic concerns keep investors wary

* Infosys beats f'cast with qtrly profit
(Updates to afternoon)

MUMBAI, July 10 (Reuters) - Indian shares were choppy on
Friday as investors took profits on economic worries, but
outsourcing bellwether Infosys Technologies (INFY.BO) rallied
after its quarterly profit beat market forecasts.

Shares in Infosys rose as much as 3.7 percent after the No.
2 software services exporter reported a 17.2 percent quarterly
profit and raised its full-year forecast at the lower end on
hopes for a pick up in outsourcing demand from overseas
clients. [ID:nBOM468675]

However, the 30-share BSE Index was trading up 0.15 percent
at 13,777.44 points by 12:37 p.m. (0707 GMT), with half of its
components gaining.

The index is down 7.9 percent so far this week and is
headed to post its second weekly fall in 18 weeks. On Monday,
it had fallen 5.8 percent after the budget failed to live up to
market expectations.

Traders said concerns about monsoon rains, the lifeline for
the country's domestic demand-led economy, was one factor
weighing on the market.

The rains were 8 percent below normal in early July,
reviving after the driest June in 83 years, but water in the
main reservoirs has more than halved, putting at risk even
winter-sown oilseeds and wheat. [ID:nBOM469427

There were also concern that foreign funds may lock in
profits if the world economic recovery takes time.

Foreigners have moved nearly $6 billion into Indian stock
in 2009, including almost $1 billion this month. This has
helped lift the benchmark BSE index 43 percent so far this
year.

"After the steep fall on budget day some amount of buying
from foreign funds was quite natural," said Ambareesh Baliga,
vice president, Karvy Stock Broking. "But we do not expect that
to be sustained in the future.

Suraj Saraogi, managing director of Keynote Capitals, said
world economic worries would impact inflows.

Higher than expected industrial output in May failed to
lift sentiment. Output rose 2.7 percent in May, above a Reuters
poll forecast of 1.4 percent. [ID:nBMA003313]

Infosys, which gets more than half its revenue from the
United States, was trading up 2.88 percent at 1,725 rupees.

Other outsourcers also rose. Top software exporter Tata
Consultancy Services (TCS.BO) was up 2.1 percent at 396.70
rupees, while No.3 Wipro (WIPR.BO) rose 3.9 percent to 386.30.

Tata Steel (TISC.BO), the world's sixth-largest steelmaker,
was up 1.9 percent at 371.15 rupees after the company said late
on Thursday more jobs were at risk at its Corus unit in Europe
as it aligned employment costs with expected steel demand.
[ID:nBOM199183]

In the broader market there were 1,200 gainers to 1,083
losers on moderate volume of 150.4 million shares.

The 50-share NSE Index was up 0.39 percent at 4,096.45
points.

STOCKS ON THE MOVE

* Mahindra Satyam (SATY.BO), formerly Satyam Computer
Services, rose 6.4 percent to 77.65 rupees after it said late
on Thursday it had signed a 5-year multi-million dollar support
contract with GlaxoSmithKline Plc (GSK.L).

* Gammon India (GAMM.BO) was up 5.6 percent at 173.40
rupees after the construction firm's FY09 net profit more than
doubled to 1.4 billion rupees.

* Drug firm Wockhardt (WCKH.BO) was up more than 2 percent
at 129.35 rupees after a group of lenders approved a corporate
debt restructuring package for the company.

MAIN TOP 3 BY VOLUME

* Unitech Ltd (UNTE.BO) on 9.7 million shares.

* Mahindra Satyam (SATY.BO) on 9.5 million shares

* Suzlon Energy (SUZL.BO) on 3.9 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Yen steady as market hesitates, euro loses ground
[FRX/]
* Oil resumes fall towards $60 as economic woes weigh
[O/R]
* Japan shares hold near 7-week low
[MKTS/GLOB]
* US STOCKS-Wall Street ekes out gain on banks, materials
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)