BENGALURU: Indian shares kicked off November on a strong note as realty and metal stocks helped benchmark indexes close more than 1% higher on Monday after three straight sessions of losses, with sentiment aided by upbeat corporate results.
The blue-chip NSE Nifty 50 index closed up 1.46% at 17,929.65, while the benchmark S&P BSE Sensex gained 1.40% to end at 60,138.46.
Both the indexes hit multiple all-time highs last month, boosting their yearly gains to more than 30%, helped by a decline in COVID-19 cases, ample liquidity, a re-opening of the economy and expectations of a strong festive season. However, valuation concerns and heavy selling by foreign investors are now weighing on markets, pulling down the indexes more than 4% from their October highs. In just the last three sessions, the Nifty and the Sensex shed 3.3% each.
"Some relief on the earnings front is triggering (today's) rebound," said Ajit Mishra, vice president of research at Religare Broking.
"Considering the kind of valuation that we are trading at... it's prudent that the market should spend some time around the current levels before making any major directional move," Mishra added.
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