Sensex edges higher; consumer stocks gain

MUMBAI (Reuters) - The BSE Sensex rose 0.1 percent on Monday, enough to post a fifth consecutive winning session, as consumer goods makers such as ITC advanced on hopes slowing inflation and reforms in the upcoming budget would boost spending.

India's wholesale prices declined an annual 0.39 percent in January, their second fall in three months, while retail inflation accelerated in January after shifting to a new base year for calculating prices, but stayed well below the central bank's target.

Earlier broader gains were however capped in part by companies posting disappointing earnings. Sun Pharmaceutical Industries fell 2.7 percent after posting on Saturday an unexpected fall in its October-December net profit.

 

The BSE Sensex closed 0.12 percent higher after earlier gaining as much as 0.8 percent.

The Nifty rose 0.04 percent.

Indian equity markets will be closed on Tuesday for a public holiday.

Domestic economy related stocks such as consumer durables gained on hopes of increased spending. ITC gained 3.1 percent while Hindustan Unilever added 1.6 percent.

(Reporting by Indulal PM; Editing by Biju Dwarakanath)