Sensex closes near 1-month high

The BSE Sensex rose on Monday to its highest close in nearly a month as stocks of companies such as Tata Steel gained after promising manufacturing data at home and in China eased concerns about slowing economic growth.

An HSBC survey showed on Monday that manufacturing returned to growth last month as a strong rise in orders pushed factories to step up production.

Traders say the US non-farm payrolls data on Friday and the outcome of elections in several states on December 8 would be key for the short term. The outcome of state elections would also be important to validate traders' expectations of a clear winner, Kumar added.

The Sensex rose 0.51 per cent, or 106.08 points, to end at 20,898.01, marking its highest close since November 5. The Nifty rose 0.68 per cent, or 41.75 points, to end at 6,217.85, marking its third consecutive day of gains.