Stocks advanced, with the benchmark gauge capping a weekly gain, tracking an increase in Asian equities as signs of stabilisation in China's manufacturing activity lifted demand for riskier assets.
Sun Pharmaceutical Industries, the nation's most valuable drugmaker, climbed for a second day. Lupin jumped to a record. Tata Consultancy Services and Infosys, the top software exporters, rose to a six-week high.Larsen & Toubro, the most valuable engineering firm, rebounded for a third day after falling to a one-year low.
The S&P BSE Sensex gained 0.3 per cent to 26,220.95 in Mumbai. The gauge has risen 1.4 per cent this week after the central bank cut its benchmark rate on Tuesday by more than economists' forecast. China's factory gauges showed slower-than-estimated contraction, easing concerns about a slowdown that erased about $10 trillion from global stock values in the quarter ended September.
"There's some sanity returning to the global markets," Aneesh Srivastava, who manages $700 million as chief investment officer at IDBI Federal Life Insurance, said by phone. "Global sentiments drove the emerging-markets selloff, which impacted India despite the nation having a better growth outlook. Those headwinds are behind us." Srivastava said he favors lenders, infrastructure and engineering companies.
Lupin surged 3.7 per cent, taking this year's gains to 48 per cent , the most on the Sensex. Sun Pharmaceutical gained 2.6 per cent. Infosys added one per cent, extending this year's gains to 19 per cent. TCS increased 2.2 per cent to its highest level since August 21. L&T rose 1.6 per cent.
