Sensex up over 200 points, snaps two-day losing streak

The Sensex surged more than 200 points and Nifty also ended higher on Monday after two days of losses as software services exporters such as Infosys (INFY.NS) rallied on a weaker rupee while lenders gained a day before the RBI's policy review. However, sentiment remained broadly cautious after foreign investors sold a net $175.73 million worth of shares on Friday, the third straight session of net sales that totalled $494.7 million. Investors will be closely eyeing the Reserve Bank of India's policy review on Tuesday. The central bank is widely expected to keep interest rates on hold, but analyst say it may loosen tight cash conditions by easing mandatory bond requirements for lenders among other potential measures. Global factors will also be critical after sharp falls late last week. In India, the Nifty fell 2.4 per cent over the previous two sessions to end on Friday at its lowest close since July 15. The broader Nifty ended up 1.07 per cent at 7,683.65, while the Sensex gained 0.95 per cent to 25,723.16. Shares in software services exporters gained after the rupee last week posted its biggest weekly fall since record low levels in August last year, according to Reuters.