Sensex rises over 100 points

The BSE Sensex rose for a third consecutive session on Tuesday, as automobile makers such as Maruti Suzuki India surged after stronger monthly sales, while strong foreign buying also underpinned sentiment.

Foreign institutional investors (FII) bought shares worth $214.42 million on Monday, their biggest single-day purchase since June 12, according to provisional exchange data. Foreign funds have pumped in $9.9 billion so far this year, spurring a rally that took the Nifty to a record high last month.

A firm trend from regional markets on upbeat manufacturing data from China also helped. In India, the HSBC Manufacturing Purchasing Managers' Index, compiled by Markit, advanced to 51.5 in June from 51.4 in May, expanding at the fastest pace in four months.

Investors were also seen churning portfolio and buying into stocks such as infrastructure and capital goods, where the newly elected government is likely to give more emphasis in its maiden budget on July 10, traders said.

The benchmark BSE Sensex gained 102.57 points, or 0.4 per cent, to 25,516.35 points, not far from the record high of 25,735.87 hit on June 11.

The broader Nifty ended higher 23.35points, or 0.31 per cent, at 7,634.70 points, within touch of a peak of 7,700.05 hit on June 11.

Shares in Maruti gained 5.9 per cent to a record high with the biggest single-day gain since March 18 after it reported a 33.5 per cent in monthly vehicle sales, which beat some analysts' expectations. Mahindra and Mahindra gained 4.11 per cent and Tata Motors ended 4.52 per cent higher.