The BSE benchmark Sensex on Monday closed 15 points higher as investors picked up bluechip stocks led by software companies amid fall in some mid-cap stocks.
The Sensex rose by 14.68 points, or 0.08%, to close at 19,331.69, mainly supported by Infosys and Tata Consultancy Services.
Throughout the session, the gauge had shuttled between 19,411.18 and 19,237.98. The index had lost over 325 points in last two sessions.
Similarly, the broad-based National Stock Exchange index rose by 4.45 points, or 0.08%, to 5,854.75.
Brokers said while market participants adopted a cautious approach before the railway and general budgets this week, some investors bought software and stocks on hopes of some sop to the sector.
They said a better trend in Asia and higher opening in Europe on speculation Japan may appoint a central bank chief who favours stimulus, further influenced the market sentiment.
The market heavy and sector majors Infosys spurted by 2.84% to Rs. 2,917.20 and Tata Consultancy Services by 1.16% to Rs. 1,471.30. The third software major Wipro rose by 0.89% to Rs. 419.25.
The market partially remained under pressure as the trend setter Reliance Industries lost 1.01% to Rs. 853.95 and some banking stocks ended lower on fears the new entries in the sector would hamper their revenues.
The Reserve Bank of India issued guidelines allowing any business sector to apply for banking licences.
The IT sector gained the most by 1.86% to 6,727.82 followed by Teck index by 1.28% to 3,871.90. Auto sector index rose by 0.78% to 10,784.87.
Among mid-cap stocks, Core Projects led the decline by falling 62.42% to close at Rs. 110.95 followed by 10-20% decline in stocks of Opto Circuits, ABG Shipyard, Welspun Corp and Gemini Comm.
In 30-BSE index components, 15 stocks advanced and 14 closed with losses, while ITC Ltd remained unchanged.