Mumbai: The BSE Sensex rose on Monday after two days of losses as software services exporters gained after Wipro Ltd. posted solid earnings and joined domestic rivals in giving a positive outlook for the sector.

Value-buying also boosted recent underperformers, including lenders such as State Bank of India (SBI) and more defensive stocks such as cigarette maker ITC Ltd.

However, broader gains were capped as Reliance Industries Ltd. (RIL) fell after its October-December quarterly profit when adjusted for other income was seen lagging expectations.

Investors are also growing hopeful the Reserve Bank of India (RBI) will keep interest rates on hold at its policy review on 28 January, which analysts say could spur additional gains in shares.

“For the markets to sustain, we require a lot of good news from the RBI. The policy review is going to be the biggest trigger for the market in the short term," said Mehraboon Irani, head of private client group at Nirmal Bang Securities.

“All economy-related stocks will continue to disappoint, while defensive sectors like pharma and IT will continue to outperform the broader markets."

The Sensex closed up 0.67% at 21,205.05, while the broader Nifty ended higher 0.68% at 6,303.95.

Foreign institutional investors (FIIs) bought shares worth Rs753 million on Friday, exchange data showed. FIIs have been buyers for seven consecutive sessions to the tune of Rs2,021 crore.

Shares in Wipro gained 3.7% after the company said late on Friday it is eyeing more lucrative financial industry contracts from Europe and the US to catch up with its bigger rivals and looks to grow its sales by up to 4% this quarter.

Tata Consultancy Services Ltd. (TCS) rose 5.7% on value-buying after falling 5.8% on Friday, the most in a day since October 2011 after its December quarter profit when adjusted for other income, as well as operating margin were seen lagging expectations, said traders.

Banking shares closed higher with SBI gaining 1.3% ahead of the RBI policy review as investors expect the central bank to keep rates unchanged.

ITC also gained 1.7% at Rs330.20 after falling 0.2% on Friday on value-buying, said traders.

Shares in Aurobindo Pharma Ltd. closed up 6.7% at Rs409.25 after the company said on Saturday that it agreed to buy Actavis Plc’s commercial operations in seven Western European countries for about €30 million.

Reliance MediaWorks Ltd.’s shares rose 18.7% to Rs55.15 after the company said its board approved proposed plans of delisting the company.

However, RIL fell 1.7% after the company’s October-December quarter profit, out on Friday, when adjusted for other income, was seen lagging expectations, said dealers. Reuters

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