Sensex rises for third day; Reliance Industries jumps

MUMBAI (Reuters) - The Sensex rose for a third consecutive session on Monday as Reliance Industries Ltd surged after posting a stronger-than-expected quarterly profit, while sentiment was supported after Chinese economic growth data eased fears of a hard landing.

Reliance Industries rose as much as 5.2 percent after saying on Friday that its July-September consolidated net profit rose a bigger-than-expected 12.5 percent from a year earlier.

At the same time, investors were comforted after China's economy grew slightly better than forecasts in the July-September quarter, even as it dipped below 7 percent for the first time since the global financial crisis.

Still, traders worried the gains might not sustain. October contracts for Nifty futures were trading not far from the 50-share spot index, indicating little potential upside.

"Selective companies, especially leaders in sectors, would show better results than others as the economy improves," said Deven Choksey, managing director at K. R. Choksey Securities.

"Derivatives are also adding to the pressure."

The Nifty was up 0.42 percent after rising 1.6 percent in the previous two sessions.

The Sensex gained 0.55 percent.

Reliance Industries surged 5.1 percent and had the most positive impact on the index.

Meanwhile, Infosys Ltd rose 1.4 percent, recovering from a 6.2 percent slump last week after the company cut its dollar revenue guidance.

But recent outperformers fell, with Tata Motors down 1.4 percent after surging 29.7 percent in the previous two weeks.

(Reporting by Rafael Nam and Abhishek Vishnoi; Editing by Subhranshu Sahu)