Indian shares rose on strong global cues and sustained buying by institutional investors pushing benchmark indices to their highest levels in more than a year.
The 30-share Sensex gained 440.35 points to 28,343.01 — its highest close since July 23, 2015. Of the 30 Sensex stocks, 29 ended positive. Nifty rose by 136.90 points, its highest close since it ended at 8,750.20 on April 15, 2015.
Further, 29 of the 30 Sensex stocks ended the day in positive territory. There were 1,627 gainers as against 1,091 stocks that lost ground.
The broader Nifty of the National Stock Exchange (NSE) rose by 136.90 points or 1.59 per cent. This is the highest close for the Nifty since 15th April 15, 2015 when it closed at 8,750.20.
“Sentiments got a boost with the latest statement from the Reserve Bank of India (RBI), sharing optimism over the growth prospect in this fiscal. Also, firm opening of European markets further strengthened the rally,” said Jayant Manglik, president, Retail Distribution, Religare Securities.
“It is now clear that we are heading toward 8,850 in Nifty in near term, but traders should maintain extra caution in stock selection post this surge. Auto, private banking and NBFCs are continuing their outperformance on expected lines and now rebound in other sectoral indices is an added plus,” added Mr. Manglik.
RBI Governor Raghuram Rajan wrote in the foreword of the central bank’s annual report for 2015-16 on Monday that “economic growth, while showing signs of picking up, is still below levels that the country is capable of.”
The gains in India were largely in line with the surge in the global markets. In Asia, Hang Seng, Shanghai Composite and KOSPI all gained ground.
Foreign institutional investors (FIIs) have pumped in Rs.8,682 crore in Indian equities in August, following Rs1.2,612 crore in the previous month.
The gains in the Sensex pack were led by Bajaj Auto, Asian Paints, Maruti, HDFC Bank, ICICI Bank, HUL, Sun Pharma and Hero Motocorp among others.
