The Sensex and Nifty ended higher on Monday as telecom stocks rallied after Reliance Industries Ltd's Jio unit had raised the data tariffs last week, raising hopes it would usher more pricing discipline across the profit-challenged sector.
The benchmark BSE index closed higher by 116.76 points or 0.36 per cent at 32,506.72, while the broader NSE index ended up by 38.3 points or 0.38 per cent at 10,184.85.
Among BSE sectoral indices, TECk index gained the most by 1.26 per cent, followed by realty 1.04 per cent, IT 0.9 per cent and power 0.85 per cent. On the other hand, FMCG index fell 0.66 per cent, followed by healthcare 0.64 per cent and capital goods 0.23 per cent.
Top five Sensex gainers were Bharti Airtel (+4.99%), Reliance (+3.05%), ICICI Bank (+1.82%), Wipro (+1.63%) and Adani Ports (+1.36%), while the major losers were Cipla (-2.38%), Axis Bank (-2.27%), Kotak Bank (-1.61%), HDFC (-1.52%) and Lupin (-1.5%).
Financial stocks capped the gains on indexes after a rise in bad loans at Axis Bank Ltd last week sparked concerns over recovery of stressed assets. Axis Bank was down 2.27 per cent and Housing Development Finance Corporation Ltd was down 1.52 per cent.
Indian markets hit fresh highs last week and analysts think upcoming corporate earnings will have an impact on the short-term trend. Infosys Ltd and Hindustan Unilever Ltd will report results on Tuesday and Wednesday, respectively.
“Overall global sentiment is good and the Japanese yen has weakened,” said Anita Gandhi, whole-time director at Arihant Capital Markets.
“Things this week will also depend on the results.”
As per provisional data released by stock exchanges, foreign portfolio investors (FPIs) sold shares worth Rs 43.74 crore last Thursday. Domestic institutional investors bought shares worth Rs 40.78 crore.
Asian share markets could get a tailwind from Wall Street's record finish on Friday when the passage of a US Senate budget resolution bolstered hopes that President Trump's tax-cut plan may move forward.
The Dow had ended Friday's session with gains of 0.71 per cent, while the S&P 500 rose 0.51 per cent and the Nasdaq 0.36 per cent. Early Monday, MSCI's broadest index of Asia-Pacific shares outside Japan was a whisker firmer while South Korea put on 0.3 per cent.
A firmer dollar nudged gold down 0.4 per cent to $1,275.07 an ounce. Oil prices started firmer on Monday following a sharp decline in Iraqi crude exports due to tensions in the Kurdistan region. Brent crude rose 16 cents to $57.91 a barrel, while US crude futures added 28 cents to $52.12.