Indian shares rose on Monday, posting their fourth consecutive day of gains, as a recovery in the prices of crude oil and other commodities lifted stocks such as Reliance Industries and Oil and Natural Gas Corp.
Maruti Suzuki however fell 1.6 per cent to their lowest level in more than a week after the auto maker suspended production in Haryana, amid protests by a local community seeking an increased share of education and jobs.
The 30-share BSE index Sensex ended higher by 79.64 points or 0.34 per cent at 23,788.79 and the 50-share NSE index Nifty ended up by 26.3 points or 0.36 per cent at 7,237.05.
Among BSE sectoral indices, healthcare index gained the most by 1.1 per cent, followed by oil & gas 0.97 per cent, realty 0.71 per cent and metal 0.56 per cent. On the other hand, power index was down 0.33 per cent, followed by IT 0.27 per cent, infrastructure 0.06 per cent and TECk 0.04 per cent.
Top five Sensex gainers were HUL (+4.02%), Sun Pharma (+2.16%), Asian Paints (+2.01%), Reliance (+1.9%) and Lupin (+1.57%), while the major losers were NTPC (-2.05%), ITC (-1.72%), Maruti (-1.61%), Adani Ports (-1.39%) and GAIL (-1.29%).
Crude oil
Data showing a fall in the number of US rigs in use lifted crude prices, although analysts warned general oversupply would likely continue to keep the market weak.
Sentiments also improved in the region after China shares jumped as investors welcomed Beijing's decision to replace the top securities regulator and on signs that the government was stepping up its economic stimulus efforts.
Union Budget
But analysts warn any gains in Indian shares could be limited ahead of the government's 2016/17 Budget due on February 29. Investors hope policymakers will deliver a fiscally responsible Budget that nonetheless steers spending to key areas such as infrastructure.
Parliament is due to start a new session on Tuesday amid growing worries about the government's stalled reforms agenda such as a revamp of the goods and services tax (GST).
"The forthcoming week until the Budget will be very critical in setting the tone of the market going forward. In case we see Parliament getting disrupted, markets may correct," said Samrat Dasgupta, CEO of Esquire Capital Investment Advisors.
"However, if Parliament proceeds normally, hopes of GST and a decent Budget can spur the Nifty index another 2-3 per cent upward from current levels."
A report by SMC Global said: "Nifty is trading subdued on the Singapore Stock Exchange. Most Asian stocks fell, after the biggest weekly rally in four years, as oil held declines and a stronger yen weighed on Japanese shares. Asian stocks opened mixed today after oil ended last week lower and investors awaited manufacturing data from Japan and Europe. US stocks closed mixed Friday, mostly shaking off pressure from declines in oil prices to post their best weekly gain of the year so far. US consumer price index was unchanged in January after edging down by 0.1 per cent in December. Economists had expected prices to dip by another 0.1 per cent. The unchanged reading came as a steep drop in energy prices was offset by increases by most of the other major index components.''
Brokers said buying by retail investors due to positive Asian and rising oil prices influenced the sentiment here.
European shares rose on Monday after a positive session in Asia, with gains in miners underpinning the market and investors shrugging off worries about Britain's potential exit from the European Union.
Asian share markets rose on Monday, extending last week’s gains, as investors awaited a rush of February industry surveys to take the pulse of the global economy, while sterling stumbled on concerns the UK might yet vote to leave the European Union.