Sensex gains; Nifty above 200-day moving average

Reuters Market Eye - The BSE Sensex gains 0.85 percent, and the Nifty is also up 0.84 percent, heading for a second day of gains.

The Nifty closed above its 200-day moving average on Thursday, helping improve sentiment.

Foreign investors bought 1.6 billion rupees of shares and 15 billion rupees in equity derivatives on Thursday, according to exchange data, also helping sentiment.

Foreign investors were heavy sellers in June, selling worth 110.26 billion rupees.

ITC is up 0.9 percent, heading for a second day of gains after the company raised the price of its Gold Flake Regular Filter cigarettes.

Reliance Industries gains 2.2 percent on hopes that recent hefty increase in gas prices would improve its earnings in the medium term.

Hindustan Unilever shares gain 1.4 percent and United Spirits up 2 percent after each hit record highs earlier on expectations of positive outlooks and for new attempts at buying shares from their key stakeholders.

(Reporting by Abhishek Vishnoi)