Mumbai: The Sensex climbed to their highest in more than three months on Monday, with Infosys Technologies racing to an all-time high for the second session ahead of its earnings.
Firmer Asian markets, expectations for robust factory output growth due around 11 a.m. and hopes for upbeat quarterly earnings bolstered investor confidence.
“There is good momentum with earnings season round the corner. People are optimistic about June quarter results,” said Kunal Sukhani, manager of institutional equities at Asian Markets Securities.
Infosys, the second-largest software exporter, rose as much as 1.4% to Rs2,911.55, its highest, on expectations it would raise its dollar revenue forecast for the full year when it unveils results on Tuesday.
Rivals Tata Consultancy Services and Wipro rose 1.3% and 0.8% respectively.
By 10:51 a.m., the 30-share BSE index was trading up 0.87% at 17,998.47, with 25 of its components gaining. It rose to 18,010.07 early, its highest is more than three months.
The benchmark is up 2.9% so far in 2010, with foreign funds investing a net of $6.8 billion in Indian equities. In 2009, foreigners had bought a record $17.5 billion of stocks and powered the index up 81%.
Factory output in May probably rose 16% from a year earlier, lower than an annual growth of 17.6% in April, a Reuters poll showed.
Commerce and industry minister Anand Sharma said on Friday India’s gross domestic product growth is expected to return to “9% plus” this year, led by strong corporate performance and rising savings levels, is also expected to support sentiment.
Financials led the gainers on expectations of a pick up in loan demand. Top lender State Bank of India rose 0.5% while rivals ICICI Bank and HDFC Bank were up 1.2% and 1.8% respectively.
Mortgage lender Housing Development Finance Corp climbed 1.5%.
In the broader market, gainers were thrice the number of losers with 123 million shares changing hands on the BSE.
The 50-share NSE index was up 0.8% at 5,392.55.