BSE Sensex edged higher on Thursday as blue-chips such as HDFC Bank rose on hopes that economic data due later in the day may show easing retail inflation and a pick-up in industrial activity.
A survey of economists found consumer price inflation probably eased to 8.4 percent in May, from April's three-month high of 8.59 percent as food prices fell slightly.
India's factory output probably rose for the first time in April since January, to reflect healthy growth in core industries, while consumer prices likely eased in May, a Reuters poll found.
However, investors expect some consolidation ahead of the new government's budget due to be unveiled by mid-July.
Also, overseas investors sold Indian shares worth 3.13 billion rupees ($52.87 million) on Wednesday, provisional exchange data shows, marking their first sales since May 29.
"We are now looking forward to the new government's execution of the budget. There is some consolidation happening. As more clarity comes there would be further upside though," said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance. The benchmark BSE index rose 0.4 percent, or 102.32 points, to end at 25,576.21.
The broader NSE index rose 0.3 percent, or 23.05 points, to end at 7,649.90.
Both the indexes have risen for five sessions out of the last six.
Among rate sensitive stocks, HDFC Bank rose 2.36 percent, while Tata Motors ended 0.85 percent higher. Domestic-oriented stocks also gained on continued hopes of reforms and economic revival by the newly elected Narendra Modi government.
Power Grid Corp of India rose 2 percent while NTPC rose 1.4 percent.
Fears of consolidation after record high levels touched on Wednesday drove some investors to stocks of pharmaceutical and IT companies.
Sun Pharmaceutical Industries rose 2.8 percent while Lupin gained 0.8 percent. Among software exporters, Tata Consultancy Services rose 1.4 percent while Wipro ended 0.8 percent higher.
However, Infosys Ltd fell 0.6 percent on profit taking after rising 6.9 percent over the previous two sessions. The company named former SAP AG top executive Vishal Sikka as Chief Executive Officer, the first time it has not chosen one of its founders for the role.
Bharti Airtel slumped 3.8 percent after Credit Suisse downgraded the stock to "underperform" from "neutral," citing competition from rival Rel Jio, a unit of Reliance Industries.
Anindya Banerjee, currency analyst, Kotak Securities: One more quite trading day for the currency traders in India, with the Dollar/Rupee pair being locked within a ten paise range of 59.26/28 and 59.36 levels on spot. Large speculators have shied away from taking large bets on the currency, ahead of the Union Budget next month. Even offshore market is now trading almost at par with domestic forwards prices. However, lack of demand for paying at the longer end of curve from the central bank has led to forward premium contracting by 20/25 paise. Indian equity markets have managed to score a gain of 0.4% on the main indices with healthcare and auto leading the gains but Oil & gas and PSU stocks under selling pressure. Over the near-term a range of 59.00/59.20 and 59.40/50 on spot is expected to be the range on the Dollar/Rupee.
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Sensex rebounds 102 pts ahead of IIP, inflation data
(PTI) The benchmark Sensex recouped most of the previous session losses to end 102.32 points up near record highs powered by gains in HDFC, TCS and Sun Pharma shares ahead of industrial output and retail inflation data release due later today.
Smallcap and midcap stocks were also seen back in demand, helping sentiments improve, said equity dealers.
The BSE Sensex resumed higher at 25,597.21 and firmed up further to a high of 25,611.32 on initial buying support. It declined afterwards to 25,409.69, before settling at 25,576.21 -- showing a rise of 102.32 points, or 0.40 per cent.
Yesterday, the bluechip index had lost 109.80 points after hitting a new lifetime high of 25,735.87.
Brokers said the undercurrent remained strong on continued fund inflow on hopes of reforms and economic revival after the Narendra Modi-led government took charge.
They said investors picked up fundamentally strong stocks amid expectations of favourable IIP (Index of Industrial Production) and Consumer Price Index (CPI) inflation numbers to be released in the evening.
The Sensex surge was led by HDFC, HDFC Bank, TCS and Sun Pharma that gained between 1.2-2.8 per cent.
Bharti Airtel came under pressure and lost 3.57 per cent to Rs 341.55 on reports that a foreign brokerage has downgraded the stock. Heavyweight RIL fell 0.63 per cent.
Infosys stock, cynosure of all eyes, moved between Rs 3,298 and Rs 3,120.65 before ending 0.38 per cent down at Rs 3,166.60. The company before trading announced the appointment of Vishal Sikka as CEO and Managing Director.
Out of 30-Sensex shares, 20 ended higher and nine led by Axis Bank, BHEL, Coal India, ICICI Bank and Sesa Sterlite finished in negative zone. Tata Power ended steady.
Meanwhile, the NSE 50-share Nifty rose 23.05 points, or 0.30 per cent, to end at 7,649.90. It had crossed the 7,700 points level for the first time in yesterday's trade.
Globally, Asian indices ended lower but there was a higher opening in European markets. Investors await data on US retail sales and jobless claims.