Indian share prices closed up 2.41 percent on Wednesday on expectations of a strong earnings performance by Indian companies when the results season gets under way next week, dealers said.
They said investors were optimistic about the forthcoming first-quarter earnings season which kicks off next Wednesday with the financial results for the three months to June of India's second largest software exporter Infosys Technologies. Mumbai's benchmark 30-share Sensex index rose 257.42 points to 10,919.64.
But volumes were thin due to weak attendance at local brokerages as heavy monsoon rains continued to lash Mumbai, keeping traders away from their desks.
Overseas fund interest, a key driver of the market, has remained poor due to international market holidays, dealers said. Software and automobile stocks gained.
"The markets were surprisingly buoyant considering low volumes and attendance. There is optimism about a strong earnings performance, similar to the previous quarter," said Atul Hatwar, a dealer at brokerage Crosseas Securities.