Mumbai: Rising for the second straight day, the benchmark BSE Sensex Monday jumped 161 points to 26,586.55 as auto and healthcare shares surged on strong factory output data and steady inflation, while value-buying in beaten-down stocks too added to the upside.
Besides, IMD saying that the rainfall was 5 percent more than the normal limit until now also boosted the sentiment.
The NSE Nifty managed to end above 8,000-level by rising 31 points or 0.39 percent to 8,013.90 after shuttling between 8,057.70 and 7,944.85 intra-day.
"Markets witnessed a relief rally today on the bourses supported by improved macroeconomic data -- IIP and inflation numbers. Timely arrival of monsoon in the southern part...Also improved the sentiment," said Gaurav Jain, Director of Hem Securities.
However, global markets hit by concerns over Greek debt talks capped the gains. Other Asian markets ended lower and European stocks were also down in their early trade.
"...There is a looming concern of Greece payment default on the street and on the world indices," Jain added.
In volatile movements, the 30-share Sensex after falling to the day's low of 26,307.84, staged a strong comeback at a rapid pace to hit high of 26,728.60. On profit-booking towards the close at improved levels, it trimmed gains and settled 161.25 points or 0.61 percent higher at 26,586.55.
The gauge had gained 54.32 points in the previous session.
Industrial production grew at a two-month high of 4.1 percent in April, mainly driven by manufacturing sector, while retail inflation edged up to 5.01 percent in May.
Meanwhile, another data showed wholesale inflation remained in the negative zone for the seventh consecutive month in May following easing fuel and food items prices.
In a research note, Citigroup said that overall, the monsoon is still a risk factor but "we expect CPI (retail inflation) to undershoot RBI's Jan-16 projection by 40 bps and average 5 percent in 2015-16. This is likely to create room for further 25 bps cut in current fiscal".
"Better than expected CPI and fair development to monsoon till-date is providing support...But still India is in risk-off mode, led by dollar liquidity which is impacting increase in global bond yield," said Vinod Nair, Head of Fundamental Research at Geojit BNP Paribas Financial Services.
Key benchmark indices in China, Singapore, Hong Kong, Taiwan, Japan and South Korea fell in the range 0.09 to 2.00 percent.
European markets were also trading lower as indices in France, Germany and the UK fell between 0.69 and 1.29 percent.
Hiren Dhakan, Associate Fund manager at Bonanza Portfolio said: "On the global front, European shares tumbled in today's trade after the so called 'last stitch' talks with Greek government and creditors failed and ended without any solution or compromise."
Back home, 17 scrips from 30-Share Sensex ended higher.
Major gainers were Sun Pharma (2.95 percent), M&M (2.36 percent), Bajaj Auto (2.13 percent), HDFC (2.07 percent), REL (1.33 percent), ONGC (1.15 percent), ICICI Bank (1.10 percent) and Tata Motors (1.09 percent), while Hindalco fell 197 percent and Vedanta 1.49 percent.
Among BSE sectoral indices, auto rose 1.12 percent, healthcare 0.96 percent, oil&gas 0.87 percent, teck 0.54 percent, while consumer durables fell 0.83 percent, metal 0.62 percent and power 0.48 percent.
Total turnover rose to Rs 2,353.06 crore from Rs 2,204.76 crore on last Friday.
The market breadth turned positive as 1,440 stocks ended higher, 1,207 finished lower and 141 ruled steady.
