Mumbai (Maharashtra): The BSE Sensex crossed 39,000 mark for the first time ever on Monday as the new financial year set in ahead of the general elections but closed at 38,871.
It had hit an all-time high of 38,989 in August last year.
Strong gains were witnessed in metal, IT and state-owned bank stocks as investors awaited the Reserve Bank of India’s crucial monetary policy meet beginning on Tuesday. The outcome is scheduled to be announced on April 4.
The BSE S&P Sensex closed 199 points higher at 38,871 while the NSE Nifty 50 gained 32 points to wind up the day at 11,656.
Traders said the bourses are expected to perform well due to strong inflows from foreign institutional investors. There is expectation of continued policy reforms if the single largest party comes back to power after general elections beginning on April 11.
At the National Stock Exchange, the metal index closed 1.8 per cent higher, IT 1.3 per cent and PSU bank over 1 per cent.
Among the prominent gainers were Tata Motors which was up 7.8 per cent, Hindalco 4.8 per cent, Wipro 2.9 per cent, Maruti 2.5 per cent and Bharti Airtel 2.3 per cent.
However, Indian Oil, Eicher Motors and IndusInd Bank lost.
Meanwhile, other Asian stocks too rallied with market sentiment supported by positive Chinese factory data and signs of progress in US-China trade talks. The Caixin/Markit purchasing managers’ index (PMI) showed manufacturing sector returning to growth.
The United States and China said they made progress in trade talks that concluded on Friday in Beijing.