The Sensex and Nifty marked their longest winning streak in over three years closing higher for the ninth straight session as consumer-based stocks rose on a normal monsoon forecast by India Meteorological Department (IMD).
While the Sensex rose 89 points to 34,395, Nifty closed 20 points higher to 10,548 level.
India Meteorological Department (IMD) said on Monday monsoon rains are likely to be 97 per cent of their long-term average in 2018, reassuring farmers ahead of summer planting in a country where only half of the farmland is irrigated.
The BSE index which opened nearly 100 points higher marked its longest winning run since early September 2014 after close.
Diversified consumer goods manufacturer Hindustan Unilever (HUL) hit its 52 week high level of Rs 1,450 on expectations of a normal monsoon. The stock closed 1.83% higher at 1,445 level.
Mahindra and Mahindra, which is among the world's largest tractor maker, rose to its 52 week high of 819 level on BSE. The stock closed 1.05% higher at Rs 809 on BSE. Normal monsoon will bring cheers to the farmers with water available in abundance for their crops. This in turn would spur sales of farm equipment and agricultural products.
Mahindra and Mahindra is also engaged in the business of manufacturing and selling farm equipments, agricultural machinery, equipment and other agriculture products.
Abhijeet Dey, senior fund manager-equities at BNP Paribas Mutual Fund said, "Markets traded on a volatile note as lacklustre industrial production numbers dampened sentiment. Industrial production grew just 6% in March, compared with 7.2% in the first two months of the year, and 6.8% overall for the quarter. Both the benchmark Sensex and the Nifty finally closed the day with marginal gains. Sectoral performance on the National Stock Exchange (NSE) was mixed. While the PSU banking, media, IT and auto indices traded with losses, the FMCG index registered sharp gains."
On the Sensex, top gainers were PowerGrid (2.94%), NTPC (1.99%) and Hindustan Unilever (1.83%) were the top Sensex gainers.
Consumer goods stocks led the charge on Dalal Street with the BSE consumer durables index rising 1.05% to 23,038 on expectations of a normal monsoon. The Nifty FMCG index too gained 1% to 27,536 level.The BSE FMCG index too rose 1.05% to 10,846.
Jewellery stocks closed higher a day ahead of Akshaya Tritiya, the most auspicious day according to the Hindu calendar.
Demand for gold jewellery rises on this day in the market.
Jewellery stock Titan Industries hit a fresh 52-week high of 999.95 level on BSE and closed at 998 level, rising 1.55%. PC Jeweller too closed 1.53% higher at 305 level.
Sameet Chavan, chief analyst, Technical and Derivatives at Angel Broking said, "It was a day of consolidation for our market as we saw a flat opening followed by some correction and then a gradual recovery throughout the second half to reclaim the 10550 mark. If we look at the index, it's clearly not going anywhere. The real action was seen in individual stocks, which kept lot of traders engaged during the course of action.
As far as index view is concerned, we would continue with our recent stance and expect the Nifty to gradually march towards its sturdy wall of 10580 - 10640. We reiterate that it would be an opportunity for short term traders to liquidate longs and remain light on positions. One should expect some consolidation for next couple of days before market giving any kind of directional move. Hence, intraday traders are advised to keep focusing on individual stocks and should rather adopt a proper exit strategy. For the coming session, the support now would be seen at 10500 - 10450 levels."
Meanwhile, the Indian rupee fell to its seven-month low on concerns over widening of trade deficit amid heightened geopolitical worries. Foreign institutional investors (FIIs) pulled out over Rs 308 crore and domestic institutional investors selling stocks worth Rs 28.97 crore in the Indian market on Monday also weakened sentiment.
The rupee closed at 65.6425 level, down 15 paise over its previous close.