Benchmark share indices snapped four-day losing streak to end the first trading day of 2012 on a positive note led by index heavyweight Reliance Industries and software shares.
The 30-share Sensex ended up 63 points or 0.4% at 15,518 and the 50-share Nifty ended up 12 points or 0.3% at 4,637.
On the macro front, India's November exports rose an annual 3.87% to $22.3 billion, while imports for the month rose 24.55% to $35.9 billion, the government said in a statement on Monday.
India's trade deficit in November was at $13.6 billion added the statement.
India's manufacturing activity jumped to a six-month high in December thanks to a spike in factory output and new orders from domestic and international firms, a survey of purchasing managers showed on Monday.
The HSBC Markit India Manufacturing PMI jumped to 54.2 from 51.0 in November, its biggest monthly rise since April 2009.
Reliance Industries ended up 2% at Rs 707. The stock had dropped over 8% in the previous four sessions.
On Friday, the stock has slipped 3% to Rs 690, its lowest level since March 2009, on concerns that of falling gas output from KG-D6, uncertainties over production sharing contracts and pressure on refining margins.
ICICI Bank ended up 1.7% at Rs 696.45 after dropping over 5.2% last week. Bank shares weakened on concerns that non-performing assets would increase because of a slowing economy.
Software major Infosys ended up 1.4% at Rs 2,805 while TCS also gained 1.4% to end at Rs 1,178 as strong US economic data boosted sentiment as both them earn a major chunk of their revenues from exports to the US.
Coal India ended up 3.6% at Rs 312 after the company entered into a new pricing policy, effective today.
The company shifts to international pricing, 30-60% higher than what the state-run firm's average price used to be, by benchmarking coal on the basis of gross caloric value.
India was the only country, among major producers, not following the GCV system.
Bajaj Auto was the top Sensex loser down 7.4% to end at Rs 1,475 after the company reported 18% month-on-month (m-o-m) basis drop in total sales to 3,05,690 units in December 2011, as compared to 3,74,477 units sold in November 2011.
Hindalco slipped 3% to end at Rs 112, after the Bombay High Court dismissed the company's plea against the tax department over a tax outgo of nearly Rs 1,200 crore (Rs 12 billion).
The Aditya Birla Group firm had challenged the income-tax department's contention that tax should be levied on corporate guarantees issued by the company.
Among other shares, Steel Strips Wheels ended up 2% at Rs 195 on achieving highest ever monthly sales of 9.36-lakh steel wheel rims in December 2011, as against 9.03-lakh in the same month of previous year.
Meanwhile, on December 30, 2011, Steel Strips announced that it has begun exports of steel wheels to Audi from its Chennai factory.
Maharaja Shree Umaid Mills has zoomed 10% to end at Rs 523 after the company announced bonus issue in the ratio of 2:1.
The board also approved to increase the authorised share capital of the company from Rs 10 crore (Rs 100 million), divided into 1 crore equity shares of Rs 10 each, to Rs 30 crore (Rs 300 million) into 3 crore (30 million) equity shares of Rs 10 each, it added.
KS Oils ended down 6.5% at Rs 5.50 on reports that the company may face liquidation as it finds difficult to sell its assets.
"The company's proposal for corporate debt restructuring is kept in abeyance, pending disposal of some of its wind mills to plug the hole in its balance sheet due to losses in mustard oil trading," a report suggests.
The broader market ended mixed with Mid-cap index down 0.07% and Small-cap index up 0.1% on the BSE.
Market breadth ended positive with 1,408 advances and 1,259 losers on the BSE.
