Optimistic buying in blue-chip stocks ahead of release of industrial production data for July and retail inflation for August drove stocks higher.
The benchmark BSE Sensex on Monday advanced by 195 points to end at 31,882.16 and the Nifty went past the 10,000-mark for the first time since August 7 as auto stocks gained after a less-than-expected GST cess and rising vehicle sales.
Optimistic buying in blue-chip stocks ahead of release of industrial production data for July and retail inflation for August, to be released on Tuesday, drove stocks higher.
The BSE Sensex had opened on a better note at 31,798.31 and rose to the day's high of 31,952.87. However, some profit booking in recent gainers pulled the index down to a day's low of 31,797.89 points.
The BSE barometer finally closed at 31,882.16, up 194.64 points, or 0.61 per cent. It had gained 25.55 in the previous two sessions in cautious trade.
The 50-share Nifty index of the National Stock Exchange reclaimed the 10,000-mark to hit high of 10,028.65 before ending 71.25 points, or 0.72 per cent, at 10,006.05, its highest closing since August 7. During the session, Nifty also touched a low of 9,968.80.
The GST Council on Saturday exempted small and hybrid cars from any hike but decided to levy an additional 2 per cent to 7 per cent cess on mid-sized and luxury cars as also SUVs.
Meanwhile, domestic passenger vehicle sales grew 13.76 per cent in August as consumers tried to make the most out of price cuts after GST implementation ahead of an imminent hike in cess rates.
Sentiment also supported by higher Asian markets as investors reacted with relief after North Korea refrained from conducting another missile test this weekend.
Brokers said a firming trend at other Asian markets and higher opening of European shares as concerns over North Korea eased and hurricane Irma's force waned, accelerating buying pace.
Photograph: Shailesh Andrade/Reuters