The Mumbai stock exchange's 30-share Sensex index rose 134.08 points or 1.66 percent to close at 8,206.83 in moderate turnover of 30.19 billion rupees (670 million dollars). The market opened Monday after a long four-day weekend following holidays on November 3 and 4 for the Hindu festival of Diwali. Dealers said investors were buyers across-the-board, though large purchases were made in software stocks.
"A lot of demand continues for blue chips and with a falling rupee software shares saw keen buying," said Vijay Tilakraj, chief dealer at domestic brokerage Prabhudas Liladhar. The rupee has weakened against the dollar in the past month on rising US interest rates and lower foreign investment levels in Indian shares. Indian software companies however bill in dollars and earn more in rupees when it weakens against the US currency.