Indian benchmark indices finished higher for a fourth consecutive session on Monday as investors cheered software services firm Infosys' upbeat revenue forecast and its third successive estimate-beating earnings on new client wins.
Infosys, seen as a bellwether for the Indian IT industry, rose to a life-time high on Monday after the company said it expects revenue to grow between 11.5 per cent and 13.5 per cent in constant currency terms in the current year - indicating a faster growth rate than the industry average.
Investor sentiment has improved in the past few days after data showed easing inflation and a government forecast for an above-average monsoon rains sparked hopes for the economy and for more rate cuts by the central bank.
Wholesale prices fell for a 17th straight month in March, declining by an annual 0.85 per cent, driven down by tumbling prices of oil and manufactured goods, government data showed on Monday. The pace of fall was faster than a 0.77 per cent annual decline forecast by economists in a Reuters poll. In February, the index fell a provisional 0.91 per cent.
Mirroring the optimism, foreign investors bought a net $541.85 million worth of Indian shares so far this month, taking this year's inflow to $1.08 billion.
The BSE Sensex gained 189.61 points or 0.74 per cent to 25,816.36 while the NSE Nifty rose 64.25 points or 0.82 per cent at 7,914.70.
Stock markets will remain closed on Tuesday for a public holiday.
“Infosys came out with better-than-expected results and that's why we are seeing some cheer in the market but this has to be followed up by TCS (Tata Consultancy Services),” said U.R. Bhat, managing director at Dalton Capital Advisors.
“If TCS doesn't come up with a better result, it would be a good excuse for the market to short.”
Software services exporter Tata Consultancy Services will report its March-quarter earnings after market hours on Monday. The stock finished marginally higher after falling nearly 2 per cent intra-day. Medical software company Epic Systems won a $940 million US jury verdict against TCS in a trade secret case.
Drugmaker Alkem Laboratories fell 4.4 per cent after Germany's health regulator on Friday accused Alkem of fudging trial data.
ITC rose 0.68 per cent after India's biggest cigarette maker said it would resume production at its factories, two weeks after it decided to shutter its plants over the government's stringent new packaging rules.
Global markets
Japan's Nikkei index led the way, tumbling more than 3 per cent after a devastating earthquake in the southwest of the country, with signs from a summit in Washington that other Group of 20 governments oppose intervention against the strength of the yen also playing a role.
Europe's major exchanges all fell by more than half a percent on opening, while markets in Hong Kong and Shanghai lost around 1 per cent.
Oil prices were down 4 per cent on the day, with US crude falling back below $40 for the first time in a week.