The BSE benchmark index Sensex on Monday rose by 110 points to close at a one-month high level on increased buying in capital goods and banking stocks despite a weak global trend.
After a weak start, the 30-share index gained 110.69 points, or 0.53 per cent, to settle at 20,811.44 points, a level last seen on January 24.
Brokers said market remained bullish since last week after the government announced several measures to contain fiscal deficit and highlighted diminishing price pressures in its interim budgetary proposals.
The current rally was backed by banking and capital goods sectors on expectations that improving economic growth might boost the corporate earnings, they said.
The broad-based National Stock Exchange index Nifty rose by 30.65 points, or 0.50 per cent, to 6,186.10, after touching an intra-day low of 6,130.80.
Engineering major Larsen & Toubro rose by 2.85 per cent after its subsidiary L&T Infrastructure Development Projects secured FIPB approval for FDI worth Rs 1,000 crore. Power equipment maker BHEL too jumped 3.95 per cent on increased investment buying.
Among banking stocks, Axis Bank rose by 3.96 per cent, ICICI Bank by 0.91 per cent and HDFC Bank by 1.44 per cent, pushing the banking index up by 1.19 per cent to 12,192.66.
In 30 Sensex stocks, 22 closed with gains. Tata Power was the top performer on the benchmark surging by 5.02 per cent after power regulator CERC allowed it to raise tariff and as well as seek compensation of around Rs 330 crore.
Outside the index, ICRA shot up 19.41 per cent to Rs 1,913 after Moody’s made an offer to raise its stake in the credit-ratings agency.
In global markets, Asian stocks lost ground while Europen market opened weak.