India's BSE index breaches 39,000 as metals, state-run banks shine

  • Reuters
  • Stock Market News
India's BSE index breaches 39,000 as metals, state-run banks shine
Credit: © Reuters.

* NSE index up 0.66 pct, BSE index 0.79 pct higher

* Tata Motors top gainer on NSE index

* Strong debut by Embassy Office Parks REIT

By Arnab Paul

April 1 (Reuters) - Indian shares rose on Monday, with the benchmark BSE index .BSESN crossing the 39,000 mark for the first time ever, buoyed by strong gains in metal and state-run bank stocks, while investors kept an eye on a key central bank policy meet beginning Tuesday.

Domestic markets also tracked broader Asian indexes which rallied after Chinese purchasing managers' index (PMI) showed factory activity unexpectedly grew for the first time in four months and signs of progress made in Sino-U.S. trade talks. MKTS/GLOB

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 1 percent.

Locally, positive momentum carried on to a new month after March saw the markets' best performance in three years. believe a number of positive domestic factors are driving the markets but expect a correction soon.

"There is a conviction in the markets on the possibility of a single largest party coming back to power," said Gaurang Shah, senior vice president at Geojit Financial Services in Mumbai.

"Markets also expect a 25 BPS cut by the RBI this week even though how much the banks pass on to the end consumer remains to be seen, while a comfortable rollover in the March derivatives series helped as well."

"However, we could expect some profit booking and reduction in foreign and domestic inflows once the election begins."

The broader NSE index .NSEI was up 0.66 percent at 11,700.4 as of 0615 GMT, and is on track to breach its lifetime-high of 11,760.20 hit last August.

BSE index rallied was 0.79 percent higher at 38,979.86

Nifty's auto index .NIFTYAUTO climbed 1.7 percent ahead of March sales data, which will trickle in through the day. Maruti Suzuki Ltd's MRTI.NS sales dropped 1 percent in March but its stock was trading 2.7 percent higher. Motors Ltd TAMO.NS , which was the top percentage gainer on the NSE index, rose 5.8 percent.

Nifty's metal index .NIFTYMET rose 2.6 percent with Hindalco Ltd HALC.NS which surged 5.2 percent and Vedanta Ltd VDAN.NS up 4.4 percent, leading gains.

State-run bank index .NIFTYPSU climbed 2.6 percent, led by Jammu & Kashmir Bank's JKBK.NS 9 percent rise and Syndicate Bank Ltd's SBNK.NS 5.3 percent gains.

Units of Embassy Office Parks REIT EMBA.NS rose as much as 6.3 percent on their market debut on Monday, after the real estate investment trust raised 47.50 billion rupees ($686.61 million) in India's first such listing. = 69.1800 Indian rupees)

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