The 30-share barometer gained 68.45 points, or 0.35 per cent, to trade at 19,408.35 points in early trade.

The index had gained nearly 835 points in the previous four sessions.

The wide-based index of National Stock Exchange, Nifty, moved up by 13.15 points, or 0.22 per cent, to 5,893.00.

Brokers said trading sentiment remained firm on continued buying by funds and retail investors, tracking gains in other

Asian markets after data showed Chinese manufacturing activity had picked up pace in November.

Stocks of some auto companies drew buying support largely on the back of encouraging sales data for the month of November, they said.

Banking major SBI was up over 1 per cent while private bank ICICI Bank gained nearly 1 per cent.

Auto major Mahindra & Mahindra rose by 1.35 per cent while car maker Maruti Suzuki gained 1.39 per cent in early trade.

In the Asian region, Hong Kong's Hang Seng rose by 0.10 per cent, while the Japan's Nikkei by 0.66 per cent in early trade today. The US Dow Jones Industrial Average ended 0.03 per cent higher in the previous session on Friday.

GLOBAL MARKETS ROUNDUP

Nifty futures on the Singapore Exchange rises 0.11 percent. The MSCI-Asia Pacific index excluding Japan is up 0.27 percent.

The S&P 500 wrapped up its fifth positive month in the last six on Friday, although it ended the day flat as politicians remain at odds about how to avoid the so- called fiscal cliff.

Asian shares edged higher on Monday as further signs of a stabilising Chinese economy boosted sentiment, but stagnant U.S. budget talks which threaten to derail the world's largest economy kept investors cautious and capped prices.

FACTORS TO WATCH

Two allies of India's Congress party, the Bahujan Samaj Party (BSP) and the Samajwadi Party (SP) hold separate meetings in Delhi ahead of a vote in parliament on supermarket reform.

India PMI data at 0530GMT.

Singapore hearing of India's GMR Infrastructure's injunction order case against Maldives government's arbitrary suspension of 25-year $511 mln airport modernisation deal.

INDIAN STOCKS TO WATCH

MACRO/POLICY

India's stuttering economic reform programme faces a key parliamentary test this week on whether to let foreign supermarket chains such as Wal-Mart Stores set up shop, in a vote that could pave the way for further measures to revive the economy.

India's consumer price index (CPI) for industrial workers was at 9.6 percent in October, higher than an annual rise of 9.14 percent in September, government data showed on Friday.

India's infrastructure sector output grew 6.5 percent in October from a year earlier, higher than a revised annual growth of 5 percent in the previous month, government data showed on Friday.

The Indian government will raise the limit on foreign investments in government and corporate bonds by $5 billion each, said a finance ministry official who declined to be named, in a move intended to attract more funds into the country.

RBI Governor Duvvuri Subbarao has said the Reserve Bank is ready to revisit the ideal inflation target of 4-5 percent, which many feel is too low to attain given the current scenario.

FINANCE

IndusInd Bank Ltd board approved issue of 52.1 million shares at 384.00 rupees per share to qualified institutional buyers aggregating to 20 billion rupees ($368.44

million).

The government will use the capital infusion demand from the state-run banks to nudge them to consider mergers and consolidation to help evolve a stronger network of public sector banks.

A finance ministry-appointed panel probing alleged irregularities in loans to cash- starved media house Deccan Chronicle Holdings has found violations by some lenders and has especially recommended a tightening of the lending norms by state-run lenders, a source familiar with the matter said.

Axis Bank has sent a legal notice to the Maldives government to recover its $350 million loan given to GMR Infrastructure after the Maldives government decided to terminate a contract with the GMR Group under which the Indian company was to operate the Male International airport, according to a person familiar with the matter.

Sahara group on Friday moved the Supreme Court against the order of the Securities Appellate Tribunal (SAT) dismissing its appeal against market regulator Securities and Exchange Board of India (Sebi) in a case involving refund of about 240 billion rupees with interest to about 30 million investors.

IT

IT services firm Infosys Ltd, the first Indian company to list on Nasdaq, will shift its American Depositary Shares to the NYSE Euronext in a move it said is intended to increase access to the stock for European investors.

Bangalore-based IT company MphasiS has acquired Florida, US-based data analytics company Digital Risk, for $200 million (about 11 billion rupees) in an all-cash deal, a senior executive of the company said.

AVIATION

Jet Airways (India) Ltd, India's second largest carrier by passengers carried, will shortly approach the Foreign Investment Promotion Board (FIPB) for permission to weak its ownership pattern to facilitate an equity investment by Etihad Airways, the national airline of the United Arab Emirates (UAE), two people aware of the plans said.

Amid market buzz on the promoters of SpiceJet reportedly planning to dilute their majority share, media tycoon Kalanithi Maran has decided to increase his stake by five per cent.

AUTO

India's Maruti Suzuki Nov sales rises 12.5 percent to 103,200 vehicles from 91,772 vehicles a year ago.

India's Tata Motors Nov sales falls 14 percent to 62,354 vehicles from 72,474 vehicles a year ago.

India's Mahindra & Mahindra Nov sales rises 18 percent to 48,143 vehicles from 40,722 vehicles a year ago.

India's Hero MotoCorp Nov sales falls 6.4 percent to 502,305 vehicles from 536,772 vehicles a year ago.

Mahindra & Mahindra has received a strategic endorsement from Unite – UK's biggest labour union for partnering Aston Martin.

Tata Motors owned Jaguar Land Rover launched its all new version of sports utility vehicle Range Rover with price starting from 17.2 million rupees (ex-showroom Delhi).

After having ended its alliance with Bajaj Auto to develop a small car in the sub-R2- lakh category, French carmaker Renault has now decided to develop it for the Indian market along with its global alliance partner Nissan.

RESOURCES/ENERGY

Faced with soaring demand, stagnant output at home and a need to diversify from Iranian crude imports lost to Western sanctions, Indian oil companies are hungry for deals like ONGC's Kashagan buy that promise supplies sooner rather than later.

India's Adani Enterprises said it is planning a $1.5 billion global bond issue to fund its Australian coal, rail and port project.

The government has initiated a probe into alleged dumping of solar cells by Malaysia, China, Chinese Taipei and the US following complaints by domestic players.

The Adani Group's Carmichael coal block in Australia holds an estimated 10 billion tonne of reserves and the company plans to start commercial production from the mine by early 2016, its chairman has said.

The national auditor has taken a stern stand on auditing government revenue from oil and gas fields and has told the oil ministry that it will also scrutinise coal bed methane blocks awarded to firms such as Reliance Industries, Essar Oil, Reliance Power and Great Eastern Energy, according to government officials.

Reliance Industries and UK's BP Plc have proposed to a do a single confirmation test on three natural gas discoveries in KG-D6 block that have so far not recognised as

commercial finds by the Oil Ministry.

POWER/INFRA