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Nifty ends above 5,900, HDFC Bank & RIL help

NIFTY-INDIA-SENSEX-PARLIAMENT-FDI-VOTE:Nifty ends above 5,900 HDFC Bank, RIL help

Reuters  |  Mumbai 

The and gained on Wednesday for the sixth time in seven sessions on hopes the government will muster a majority in on a crucial to allow foreign direct investment in multi-brand retail later in the day.

Shares in organised retailers such as Ltd and rallied on hopes of a favourable for the government.

Traders said optimism ahead of the vote, that will pay the way for more reforms, have triggered a rally in mid-cap and small cap indexes and is a sign of structural bullishness in the market.

"remained cautiously optimistic before the eve of the event in the Parliament," said Kaushik Dani, a fund manager at Peerless Mutual Fund.

"Sentimentally, a lot of things are leaning towards what is going to happen today."

The gained 0.23 percent, or 43.74 points, to end at 19,391.86, its highest close since April 27, 2011.

The broader rose 0.19 percent, or 11.25 points, to end at 5,900.50 for the first time since April 13 2011, clearing the psychologically important 5,900 level.

rose 7.53 percent, closing at 464.70, its highest since July 25, 2011, while gained 3.26 percent to end at 237.65, its highest close since September 22, 2011.

State Bank of rose 1.44 percent after a senior executive told reporters that the Indian government is looking to infuse 40 billion rupees in the bank.

Other state-run banks that gained were , which rose 3.42 percent and Bank of , which ended up 2.3 percent.

Tata Motors rose 1.25 percent, buoyed by a Morgan Stanley report which maintained its 'overweight' rating and said it is optimistic of a strong rebound in sales in the January to March quarter.

Property developer Ltd jumped 4.5 percent, posting its biggest gains since October 4 on hopes of a strong pick-up in launches in the second half of FY13, dealers said.

All major tyre makers gained. rose 2.25 percent, Ceat Tyres added 2.6 percent, was up 4.13 percent, while JK Tyres & Industries was 4.4 percent higher.

The gains tracked a fall in the price of rubber, a key raw material which constitutes nearly 40 percent of the production cost of tyres. Rubber futures have fallen 6.4 percent in five previous trading sessions.

However, technology shares fell on fears that Technology Solutions Corp may lower its revenue growth guidance for 2013 based on compensation targets for top executives.

Sentiment was also dampened by Cowen's downgrade of Infosys Ltd to 'neutral' on Tuesday due to fears of a protracted revenue growth recovery.

Infosys ended down 2.25 percent, Ltd fell 1.8 percent and HCL Technology dropped 1.4 percent.

(Editing by Prateek Chatterjee)

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