Key benchmark indices hit record highs on Monday, supported by positive global shares. Easing crude oil prices and strengthening rupee also boosted sentiment. The market also reacted to the positive IIP numbers released by the government on Friday. IT major Infosys was the biggest contributor to index gains. The stock got a boost after encouraging Q3 numbers.

The barometer BSE S&P Sensex rose 259.97 points or 0.62% to 41,859.69, its record closing high. The index hit a record high of 41,899.63 in intraday today.

The Nifty 50 index gained 72.75 points or 0.59% to 12,329.55, its record closing high. The index hit a record high of 12,337.75 in intraday today.

In the broader market, the BSE Mid-Cap index rose 0.87% and the BSE Small-Cap index was up by 0.95%.

The market breadth was strong. On the BSE, 1544 shares rose and 984 shares fell. A total of 183 shares were unchanged.

Economy:

India's industrial output (IIP) grew 1.8% in November against a contraction of 3.8% in October, according to the data released by the government. Manufacturing output, which accounts for more than three-fourths of the entire index, grew 2.7% in November, against a contraction of 2.1% in October. Mining production grew 1.7% against a fall of 8% a month ago.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.597% at 16:40 IST compared with 6.585% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.8525, compared with its close of 70.94 during the previous trading session.

In the commodities market, Brent crude for March 2020 settlement rose 3 cents to $65.01 a barrel. The contract fell 39 cents or 0.59% to settle at $64.98 a barrel during the previous trading session.

Overseas Markets:

Shares in Europe and Asia advanced ahead of US-China trade deal that will be signed this week on 15 January 2020.

This week Wednesday, U.S. President Donald Trump and Chinese officials are due to sign the long-awaited phase one trade deal between both countries. The deal will involve some tariff relief, increased Chinese purchases of U.S. agricultural goods and changes to intellectual property and technology rules. Meanwhile, Washington and Beijing have agreed to hold semi-annual talks in targeting to resolve disputes and push for reforms.

In US, stocks ended lower on Friday, after the Dow briefly topped the 29,000 milestone, with investor euphoria over recent record highs deflated by data showing slower-than-expected US jobs and wage growth in December.

The US Labor Department said the US economy added 145,000 new jobs in December less than the 266,000 gain in the prior month. The unemployment rate, meanwhile, held near a 50-year low at 3.5%.

Buzzing Indian Index:

The Nifty IT index rose 1.67% to 16,225.90, extending gains for second straight session. The index has risen 1.89% in two sessions.

Oracle Financial Services Software (up 3.46%), Mindtree (up 1.43%), Tech Mahindra (up 1.31%), Wipro (up 1.25%), HCL Technologies (up 1.02%) and Mphasis (up 0.68%) advanced.

TCS (down 1.03%), Hexaware Technologies (down 0.87%) and Persistent Systems (down 0.31%) declined.

Infosys surged 4.76% to Rs 773.40. On a consolidated basis, net profit rose 10.9% to Rs 4,457 crore on 2% increase in revenues to Rs 23,092 crore in Q3 December 2019 over Q2 September 2019.

The company increased FY20 revenue guidance. The revised guidance is 10.0%-10.5% in constant currency higher than 9-10% estimated earlier. It maintained FY20 operating margin guidance range of 21%-23%.

Infosys said that its audit committee has found no evidence of financial impropriety or executive misconduct, giving a clean chit to CEO Salil Parekh and CFO Nilanjan Roy who were accused by anonymous whistleblowers of rigging the company's balance sheet.

The Nifty Realty index rose 2.09% to 317.15, outperforming all other sectoral indices on the NSE. The index has risen 6.77% in three sessions.

Sobha (up 6.97%), Indiabulls Real Estate (up 4.95%), Parsvnath Developers (up 4.95%), Peninsula Land (up 4.86%), HDIL (up 4.81%), Prestige Estates (up 4.25%), DLF (up 3.56%), Unitech (up 2.11%), D B Realty (up 1.7%), Godrej Properties (up 1.11%), Omaxe (up 0.26%), Mahindra Lifespace Developers (up 0.21%), Oberoi Realty (up 0.21%) and Sunteck Realty (up 0.03%) advanced.

Stocks in Spotlight:

Avenue Supermarts rose 1.56%. On a consolidated basis, the company's net profit jumped 55.3% to Rs 384.04 crore in Q3 December 2019 compared with net profit of Rs 247.25 crore in Q3 December 2018. Profit after tax (PAT) margin improved to 5.6% in Q3 December 2019 from 4.5% in Q3 December 2018. Net sales rose 24.4% to Rs 6808.93 crore in Q3 December 2019 from Rs 5474.27 crore in Q3 December 2018.

Tata Steel advanced 1.85%. The company's wholly-owned Netherlands- based subsidiary, Tata Steel Netherlands Holdings BV (TSNBHV), said that it has executed agreements for the refinancing of its bank debt. TSNBHV has raised term loan facilities of euro 1.75 billion from 19 banks. The fresh arrangement will enable the standalone European business to have a more robust balance sheet.

Yes Bank slumped 6.03% to Rs 42.10. The private sector bank said that its board have approved raising of funds upto Rs 10,000 crore through a mix of equity and debt and decided not to proceed with the offer from Erwin Singh Braich-SPGP Holdings. The bank will hold extra-ordinary general meeting to obtain shareholders' approval for fund raising.

Adani Enterprises rose 2.30% after Siemens AG said it will remain involved in a controversial Adani coal mining project in Australia. Germany's Siemens AG on 10 December 2019 signed the contract to supply signaling systems for a rail link between the Adani Carmichael coal mine and a port. The contract is worth about $20 million to Siemens.

Climate activists wanted Siemens to quit the mine project because emissions from coal-fired power plants contribute to global warming. Opposition has worsened in the wake of Australia's recent devastating bushfires.

Tata Elxsi jumped 5.17% after the company reported a 51.43% jump in net profit to Rs 75.42 crore in Q3 December 2019 as against Rs 49.80 crore reported in Q2 September 2019. Revenue from operations rose 9.75% to Rs 423.43 crore on QoQ basis.

Tata Chemicals rose 2.18% while Tata Global Beverages rose 3.40%. Both the stocks hit their respective 52-week highs in intraday trade today.

The National company Law Tribunal (NCLT), Mumbai Bench, vide its order dated 10 January 2020 had sanctioned the Scheme of Arrangement between Tata Chemicals and Tata Global Beverages and their respective shareholders and creditors for the demerger of the consumer products business consisting of the business of sourcing, packaging, marketing, distribution and sales of vacuum evaporated edible common salt for human consumption, spices, protein foods and certain other food and other products from Tata Chemical to Tata Global Beverages.

In May last year, Tata Group had decided to demerge consumer business of Tata Chemicals and merge it with Tata Global Beverages. Tata Global Beverages will be renamed as Tata Consumer Products. The management said the combination of the two consumer-focused businesses will benefit both sets of shareholders who will be able to participate in a larger business poised to grow their share of the foods & beverages market with a broader exposure to the attractive and fast growing FMCG sector.

Edelweiss Financial Services gained 3.73% after the company's chairman Rashesh Shah denied links with Capstone Forex, which is being investigated by the Enforcement Directorate for foreign exchange rules violation.

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