Reliance, L&T drive Sensex up

The Sensex rose on expectations that companies would report higher advance tax payments this month, signaling an increase in profits. Reliance Industries and Larsen & Toubro paced gains.

"L&T is one of the leaders in the infrastructure sector and its advance tax payment figures are expected to be good,'' said RK Gupta, who manages $100 million of stocks at Credit Capital Asset Management.

Companies are scheduled to pay the third quarterly tax installment for the financial year ended March 31, by December 15. The Sensex advanced 208.57 points, or 1.1 per cent, to 19,738.07. Twenty three of the 30 stocks rose.

The Nifty rose 81.65 points, or 1.4 per cent, to 5,940 points. Nifty futures for December delivery rose 1.8 per cent to 5,980.45 points. Data on the Sensex's web site revealed that in the broader market, 2,164 shares advanced, compared with 687 declining stocks.

The Asian markets rebounded on speculation that the US and UK will step up measures to contain subprime loan losses. The BSE mid-cap index extended gains for a fourth day, adding 1.7 per cent to 9,052.83 points.