Indian shares rallied to their highest level in nearly 11 months on Monday, tracking a rise in global markets after strong US monthly jobs data reassured investors about the health of the world's largest economy. The broader NSE index closed up 1.74 percent at 8467.9, while the benchmark BSE index ended up 1.84 percent at 27,626.69, after both hit their highest since August 20.
Banks were among the leading gainers, with the Nifty Bank Index gaining as much as 2.08 percent. Bank of India rose as much as 5.46 percent, while ICICI Bank Ltd advanced as much as 3.62 percent. The US economy added 287,000 jobs last month, the highest total in eight months, smashing the consensus forecast of 175,000.
Investors now focus on corporate earnings, which they expect to be largely positive, for further direction. Blue chips Tata Consultancy Services Ltd and Infosys Ltd are scheduled to report their quarterly results later this week.
They also hope that the government would be able to pass a revamped goods and services tax bill in the monsoon session of parliament which starts on July 18. "Besides earnings, investors are also betting on prospects of the goods services tax (GST) bill getting passed, monsoon progress and positive fund flows," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services. Bajaj Finance Ltd rose as much as 6.2 percent to a record high, after the company said it would consider sub-division of equity shares.
Sun Pharmaceutical Industries Ltd gained as much as 1.7 percent after the company said it launched its ready-to-administer cancer drug, Gemcitabine InfuSMART, in Europe. Auto maker Tata Motors Ltd rose as much as 4.4 percent, after the company on Friday posted a 21 pct rise in global vehicles wholesales for June.