The BSE benchmark Sensex added 79 points in a volatile session today ahead of Reliance Industries (RIL) earnings as appetite for IT shares prevailed over poor inflation and industrial production data.
Tata Consultancy Services (TCS), Infosys Ltd, HDFC Bank and Reliance Industries boosted BSE Sensex, which rose for the fifth straight session. Major gainers on the index included Wipro and Tata Motors.
IT and technology stocks led seven of the 13 BSE sectoral indices higher.
The S&P BSE Sensex opened higher at 20,534.61. It moved in a band of 20,497.88 to 20,645.94 before ending at 20,607.54, a gain of 78.95 points or 0.38 per cent. The index is at the highest closing level since September 19.
The CNX Nifty on the National Stock Exchange rose 16.5 points to 6,112.70. The SX40 index on the MCX Stock Exchange was at 12,269.75, up 51.88 points.
Shrikant Chouhan, Head- Technical Research, Kotak Securities: Market opened flat and remained lackluster for the entire session. Inflation data had a quick small reaction in the market. As data was closer to expectation of 6% market reversed the initial loss and closed the day above 6100. Nifty at current juncture has good round of support at 6060 levels and resistance is seen at 6130-6160 levels. Heavy weights results of TCS and Reliance will keep the market buzzing. Traders should look for trading in the small range of 6060 to 6160. Investors should look to book partial profits and wait for markets to correct.
Inflation as measured by the Wholesale Price Index in September was at a seven-month high of 6.46 per cent, compared with 6.1 per cent in August and 5.85 per cent in July.
The Reserve Bank of India increased a key policy rate on September 20, saying inflation had to be lowered to more tolerable levels. Its next policy review is on October 29.
"WPI inflation...is way above the comfort zone of RBI. This somewhere dampened the market spirit as there are chances of rate hikes in next monetary policy," said Nidhi Saraswat, Senior Research Analyst at Bonanza Portfolio Ltd. "Post Infy results, IT stocks continue to lead the rally."
Industrial output growth slowed to 0.6 per cent in August compared with 2.8 per cent in July, the government said.
Capital inflows also boosted the market as overseas investors bought a net Rs 1,010.45 crore of shares on October 11, according to provisional data from the stock exchanges.
Asian stocks ended lower, weighed down by an unexpected drop in China's exports and the US impasse on raising the nation's debt limit and restoring government operations.
Indices in Singapore, South Korea and Taiwan fell, while the Shanghai Composite rose. Markets in Japan and Hong Kong were closed. European markets traded mixed.
In the domestic market, 13 of the 30 Sensex shares gained, led by TCS (4.27 pc), Wipro (2.58 pc), Infosys (1.52 pc), Tata Motors (1.48 pc) and HDFC Bank (1.08 pc).
The major losers on the index included Hindalco Industries (3.15 pc), Tata Steel (1.88 pc), Cipla (1.75 pc), GAIL India (1.71 pc) and BHEL (1.56 pc).
Among the sectoral indices, S&P BSE IT rose 2.32 pc, followed by S&P BSE Teck 1.82 pc, S&P BSE Bankex 0.55 pc and S&P BSE Auto 0.45 pc.
The small-cap and mid-cap indices moved up 0.51 pc and 0.62 pc, respectively. However, S&P BSE Metal eased 0.64 pc, S&P BSE FMCG 0.57 pc and BSE-Capital Goods 0.42 pc.
The market breadth remained positive as 1,291 stocks ended with gains, 1,130 closed with losses and 154 ruled steady.
BSE Sensex closes near 1-month high, IT shares cheer post-Infosys Q2 results
(Reuters) BSE Sensex rose on Monday, marking their highest close in nearly one month, as technology shares continued to make record highs after Infosys cheered the sector on Friday by raising the lower end of its fiscal 2014 revenue outlook.
Tata Consultancy Services (TCS) Ltd provisionally rose 4.6 per cent after earlier marking its all-time high of Rs 2,225 while Infosys Ltd ended 1.1 percent higher, its highest close since January 2011.
The benchmark BSE index provisionally rose 0.46 per cent, while broader NSE Nifty index ended up 0.27 per cent, both marking their highest close since Sept. 19, rising for a fifth consecutive day.