The broader NSE index rose to its highest in nearly a month, gaining for a seventh consecutive session on Monday as stocks focused on the domestic market such as Larsen & Toubro and Maruti Suzuki rose on hopes of fresh foreign allocations at the start of the year.
Foreign investors bought Indian shares worth $45.3 million on Thursday and Friday, adding to the $16.11-billion they infused in 2014, as per regulatory data.
Investors expect Prime Minister Narendra Modi's government to continue with the reforms process, while fresh buying is expected ahead of the federal budget and December-quarter results.
The quarterly earnings season kick-starts with Infosys’ results on January 9.
“Most western markets are opening now after holidays, so there are incremental flows,’’ said Deven Choksey, managing director at K R Choksey Securities.
Fund flows in the first quarter would be key. The country’s budget next month would determine the direction, he added.
The broader NSE index rose 0.16 per cent after earlier marking its highest level since December 8. The benchmark BSE index gained 0.21 per cent to 27,946.05.
Credit Suisse said global linkages will drive the markets in the near term, apart from developments on the Goods and Services Tax and coal auctions front.
Larsen & Toubro gained 1.8 per cent after it said L&T Construction won orders worth Rs 4,006 crore in December.
Citigroup has upgraded the stock to “buy’’ from “neutral’’ citing improved order inflow prospects.
Maruti Suzuki India rose 2.7 per cent.