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