By Manoj Dharra
MUMBAI (Reuters) - The BSE Sensex edged slightly higher on Monday as Tata Motors extended its recent rally on hopes of improved sales at its key unit Jaguar Land Rover, while short-covering helped technology shares such as Infosys advance.
Volumes were thin, with global shares steady, as the holiday mood set in across markets despite tensions over the U.S. budget dispute.
The thin volumes could exacerbate the volatiliy expected later this week ahead of the monthly derivatives expiry on Thursday.
"Indian shares are adopting a wait-and-watch policy to await the outcome of the U.S. fiscal cliff and not moving in a tangible manner," said Kaushik Dani, fund manager at Peerless Mutual Fund.
On the domestic front, third-quarter earnings will also start and developments on earnings will determine the direction of the market, Dani added.
The benchmark BSE Sensex rose 0.07 percent, or 13.09 points, to end at 19,255.09.
The broader Nifty rose 0.14 percent, or 8.05 points, to end at 5,855.75.
The stock market is closed on Tuesday for Christmas.
Tata Motors Ltd
The auto-maker's shares have gained 9.5 percent so far this month, as of Friday's close.
Technology shares gained on short-covering as the recent underperformance was seen as overdone. Infosys Ltd
Tata Consultancy Services Ltd
Analysts expect the technology sector to see some pick-up in outsourcing activity as the sector has been beaten down in 2012 due to the eurozone crisis and unfavorable election rhetoric in the U.S.
Loss-making Kingfisher Airline
Kingfisher officials were not immediately available for comment.
Oil & Natural Gas Corp
Shares in Tata Steel
Maruti Suzuki Ltd
Angel Broking says Maruti Suzuki expects "muted" volume growth of around 6 percent in fiscal 2013 and 6-7 percent in fiscal 2014, according to a note on Monday, citing the automaker's management.
(Editing by Sunil Nair)