The BSE Sensex on Monday rose after strong earnings from blue-chip companies such as Larsen & Toubro (L&T) and Tata Consultancy Services (TCS) improved the market sentiment. Kingfisher Air-lines slumped after the civil aviation authorities suspended its flying licence.
Gains in banking stocks such as ICICI on expectations the Reserve Bank of India (RBI) might cut the cash reserve ratio at its policy review on October 30 also helped.
A cut in the repo rate is seen as less likely, with only nine of 37 analysts predicting such an outcome in a Reuters poll last week.
The BSE Sensex rose 0.6 per cent, or 111.13 points, to 18,793.44, rebounding from an earlier fall of as much as 0.44 per cent. The 50-share Nifty rose 0.58 per cent, or 32.90 points, to 5,717.15.
Construction and engineering company L&T ended 2.3 per cent higher, after beating estimates with a 42.4 per cent rise in net profit for the July-September quarter.
TCS gained 2.3 per cent after posting a 44 per cent rise in quarterly profit late on Friday. Shares in Indiabulls Financial Services rose four per cent, after reporting higher-than-expected rise of 30.6 per cent in its September quarter net profit.
ICICI Bank rose 1.73 per cent, recovering from a 0.7 per cent fall on Friday, while HDFC Bank rose 1.67 per cent.
Kingfisher slumps 5%
Kingfisher Airlines’ shares fell 4.8 per cent on Monday, after the civil aviation regulator cancelled its licence, forcing the the debt-laden carrier to stop bookings. Its scrip hit the lower circuit limit of Rs 10.9 soon after the opening trade on the BSE. Similar was the trend at NSE, where the stock fell 4.82 per cent to Rs 10.85.
