The Sensex and Nifty closed higher today on heavy buying in energy, capital goods, power and banking stocks following positive leads from global markets and a strengthening rupee. While the Sensex rose 276 points or 0.78% to 35,934 level, the Nifty rose 80.25 points to 10, 852 level.
Top Sensex gainers were Vedanta (3.14%) , Asian Paints (3.11%) and YES Bank (2.70%).
Confluence of global stability, a sense that the rupee has bottomed and current valuations (of stocks) are holding the market up," said Harendra Kumar, Managing Director at Elara securities.
Investors have shifted focus from trade tensions between China and US to Q1 corporate earnings which start tomorrow.
The BSE Sensex rallied for the second day logging the highest closing level since January 31, when it had closed at 35,965.
Appreciating rupee against the dollar and fresh buying by domestic institutional investors added to the momentum, brokers said.
Investors were also looking forward to the quarterly results of IT majors TCS and Infosys that will kick-start the earnings season later this week, they added.
Infosys was up 1.14 per cent at Rs 1,299.15, while TCS closed lower by 1.34 per cent at Rs 1,887.65.
The TCS stock was the top Sensex loser.
Other IT counters like HCL Technology, Tech Mahindra and Wipro gained up to 1.68 per cent.
DIIs bought shares worth a net of Rs 1,480.82 crore, while foreign portfolio investors (FPIs) sold equities to the tune of Rs 968.18 crore on Friday, provisional data showed.
VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities said the markets began the week on a buoyant note with 80 points under its belt at 19,853. In doing so, the Nifty has closed above the 10,840 mark trend line resistance, which can pave the way for the benchmark to gun for 10,893. A close above this would mean that the Nifty can scale a new high before August 15. The gains came on the back of a robust June Payrolls in the US . The Rupee also appreciated.
Japan's benchmark Nikkei 225 added 1.2 percent to finish at 22,052.18. Australia's S&P/ASX 200 edged up 0.2 percent to 6,286.00, while South Korea's Kospi gained 0.6 percent to 2,285.80. Hong Kong's Hang Seng rose 1.3 percent to 28,688.50, while the Shanghai Composite index jumped 2.5 percent to 2,815.11. Shares were higher in Taiwan and Southeast Asia.
France's CAC 40 edged up 0.6 percent in early trading to 5,409.31, while Germany's DAX added 0.3 percent to 12,531.46. Britain's FTSE 100 was also higher at 7,647.18, up 0.4 percent. U.S. shares were also set for gains, with Dow futures up 0.5 percent to 24,588. S&P 500 futures rose 0.4 percent to 2,773.40.