Sensex edges higher on hopes of positive macro numbers

The BSE Sensex edged higher on Thursday as blue-chips such as HDFC Bank rose on hopes that economic data due later in the day may show easing retail inflation and a pick-up in industrial activity.

India's factory output probably rose for the first time in April since January, to reflect healthy growth in core industries, while consumer prices likely eased in May, a Reuters poll found.

However, investors expect some consolidation ahead of the new government's budget due to be unveiled by mid-July.

The Sensex rose 0.4 per cent, or 102.32 points, to end at 25,576.21. The Nifty rose 0.3 per cent, or 23.05 points, to end at 7,649.90. Both the indexes have risen for five sessions out of the last six.

Among rate sensitive stocks, HDFC Bank rose 2.36 per cent, while Tata Motors ended 0.85 percent higher.

Domestic-oriented stocks also gained on continued hopes of reforms and economic revival by the newly elected Narendra Modi government.

Power Grid Corp of India rose two per cent while NTPC rose 1.4 per cent. Sun Pharma rose 2.8 per cent while Lupin gained 0.8 per cent.

Among software exporters, Tata Consultancy Services rose 1.4 per cent while Wipro ended 0.8 per cent higher.

However, Infosys Ltd fell 0.6 per cent on profit taking after rising 6.9 per cent over the previous two sessions. The company named former SAP AG top executive Vishal Sikka as Chief Executive Officer, the first time it has not chosen one of its founders for the role.

Bharti Airtel slumped 3.8 per cent after Credit Suisse downgraded the stock to "underperform" from "neutral," citing competition from rival Rel Jio, a unit of Reliance Industries.