Early on D-Street: Book profits in long positions on rally beyond 11,950 or below 11,855

The S&P BSE Sensex rose 77 points to close at 40,129 while the Nifty50 rose 33 points to close at 11,877.

For the month of October, Nifty rose 3.5 percent while in the October series, the index was up 2.6 percent.

Stable global cues, thanks to a rate cut by the US Fed, better than expected results from India Inc., festive cheer, and buying by foreign institutional investors lifted sentiment on D-Street.

In terms of sectors, much of the action was seen in IT, public sector, and realty stocks while profit booking was seen in metals, and energy space.

On the macro front, markets would react to core sector data that shrank by 5.2 percent in September 2019 as seven of eight sectors witnessed negative growth, according to official data released on October 31.

Auto companies would be in focus as automakers as well as two-wheeler makers will start declaring their sales for the month of October. The renewed buying interest for vehicles during Diwali lifted sentiment in the auto space. As a result, passenger vehicle sales may see marginal growth in October, led partly by heavy discounts.