India's second-biggest software services exporter, Infosys Technologies Ltd, led the key Mumbai index to an eight-month high on Monday, as it creeps closer to the psychologically important 6,000-mark, while bonds showed signs of recovering from a two-week-long battering. The 30-share Mumbai Stock Exchange index rose 0.66 percent to 5,930.47 points, its highest close since March 8, after rising nearly 4 percent last week.
"There don't seem to be many negative factors, and the lower crude oil prices and strong foreign fund flows are keeping the mood upbeat," said Arun Kejriwal, chief executive of Kejriwal Research & Investment Services.
Infosys gained 2.1 percent to 2,018.05 rupees, its highest close in more than four years, after its board approved a second sponsored American Depository Share offer which traders hoped would be priced aggressively.
US light crude futures edged lower on Monday to $48.85 a barrel, and dealers expect it will slip to below $48.
That boosted Reliance Industries Ltd, the biggest private-sector refiner, which rose 0.6 percent.
Bonds pared losses after the day's sale of stock worth 80 billion rupees was fully bid, suggesting appetite was reviving in a market weighed down by tight cash and rising interest rates.
The popular 7.38 percent 2015 bond was dealt at 7.2900 percent, compared with 7.3372 percent ahead of the sale results. The bond had closed Saturday at 7.2498 percent.
The benchmark 10-year yield was quoted at 7.2578 percent, against Saturday's 7.2212 percent. Monday's close was still the highest since August 1, 2002.
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