The 30-share Bombay Stock Exchange index climbed 1 per cent on Monday on hopes that companies will report robust quarterly earnings for the January-March quarter and lead a return of foreign fund flows in the equity market.
The Sensex ended up 1.05 per cent at 6,510.74 points, led largely by metals, banks and software services firms. Gainers beat losers 1,150 to 930 in active trade of 164 million shares.
The index had slipped 3.8 per cent last week.
The 50-issue National Stock Exchange index ended up 0.7 per cent at 2,029.45 points.
"After the fall last week, this is more a technical bounce back, so the index could rise another 50 points or so, but the March 31 factor will pull the index back," said Bharat Shah, director of Vikram Kenia Securities.
"On the positive side, earnings expectations are good, and there are hopes that the Reliance feud will also end soon."
Investors are sitting on their hands ahead of the fiscal year-end and the expiration of monthly derivatives contracts on Thursday. They are also awaiting cues on sales numbers for March from auto and cement makers, besides quarterly earnings.
Metal makers shone on expectations of firm prices from April. State-run Steel Authority of India rose 1.3 per cent to 64.65 rupees and private-sector Jindal Vijayanagar Steel Ltd. rose 2.5 per cent to 377.80 rupees after two large block deals in early trade.
Banks were strong on expectations of improved performance with greater consolidation in the sector. ICICI Bank Ltd., the second-biggest commercial bank, ended up 1.9 per cent at 398.10 rupees and state-run Bank of Baroda rose 2.9 per cent to 213.10 rupees.
Software services firms also rallied on earnings hopes. Infosys Technologies Ltd., the No. 2 exporter, rose 1.5 per cent to 2,190.70 rupees and Satyam Computer Services Ltd., the No. 4 exporter, rose 2.8 per cent to 398.60 rupees.
Index heavyweight Reliance Industries Ltd., the biggest petrochemicals maker, rose 1.2 per cent to 567.05 rupees on hopes that the feuding Ambani brothers may be near a settlement. Drug maker Dr. Reddy's Laboratories Ltd. rose 2.8 per cent to 772.30 rupees -- its highest close in nearly 11 weeks -- after it said it had entered a $56 million partnership with ICICI Venture to fund development of generic drugs in the U.S.
Newspaper publisher Deccan Chronicle Holdings Ltd. rose 9.7 per cent to 140.25 rupees after it said it had launched an edition in the southern city of Chennai.
