The benchmark BSE Sensex extended gains for the second straight day by surging about 132 points on Monday on sustained buying by domestic institutional investors despite disappointing macro-economic data and uninterrupted foreign fund outflows.
The NSE index Nifty ended above the 10,500-mark.
However, investor mood remained cautious due to fresh weakness in the rupee on rising crude oil prices and a subdued trend at other Asian markets, following worries over Sino-US trade disputes, a possible slowdown in the Chinese economy and signs of tighter monetary policy by the US Federal Reserve.
The rupee again breached the 74-mark against the US dollar to quote at 74.05 (intra-day) in the forex market.
Brent crude, the international benchmark, was trading higher by 0.98 per cent, to $81.79 per barrel.
Meanwhile, inflation based on wholesale prices rose to a two-month high of 5.13 per cent in September, mainly due to hardening of food prices and rise in cost of petrol and diesel, according to data released Monday.
Industrial production slipped to a three-month low of 4.3 per cent in August, while retail inflation up marginally to 3.77 per cent in September, data released by Central Statistics Office (CSO) on Friday.
Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 1,287 crore, while foreign portfolio investors (FPIs) sold shares to the tune of Rs 1,322 crore on Friday, as per provisional data.