Sensex hits fresh three-month high; HDFC up ahead of earnings

Reuters Market Eye - The BSE Sensex gains 0.42 percent, while the broader Nifty is 0.34 percent higher, after hitting new three-month highs earlier in the day, on buoyant foreign inflows and higher Asian shares.

Foreign portfolio investors have so far bought Indian stocks worth $12.34 billion in 2013.

Asian shares rose on Wednesday on another record high for U.S. stocks and unexpectedly strong German industrial orders.

Housing Development Finance Corp Ltd gains 2 percent ahead of its March-quarter earnings later in the day.

IT stocks such as Infosys Ltd up 0.6 percent, heading for a seventh session of gains on value buying, after 22.6 percent slump in April on weak results and guidance.

Among other IT stocks, Tata Consultancy Services Ltd also up 0.4 percent, while Wipro Ltd gains 0.2 percent.

Traders say the Supreme Court's decision on coal allocation scam and results of polls in Karnataka to dictate market trends in the near term.

(Reporting by Abhishek Vishnoi)