Indian shares rose sharply for a second consecutive session on Monday after European leaders signalled their readiness to curb the region's debt crisis. Asian markets rose broadly and major European averages extended the previous session's rally on hopes of new stimulus measures from the U.S. and European central banks this week, helping lift stocks across the board.
The benchmark 30-share BSE Sensex ended the day up 305 points or 1.81 percent at 17,144, with 27 of its components advancing. The broader Nifty index rose by about 100 points or 1.96 percent to 5,200, while the BSE mid-cap and small-cap indexes rose 1.5 percent and 1.3 percent, respectively. All the sectoral indices ended in the green, with power, realty, capital goods and banking stocks in the lead.
ICICI Bank climbed nearly 4 percent, extending gains for a second straight session after the country's largest private sector lender reported better-than-expected quarterly results on Friday. State Bank of India jumped 4.6 percent, rebounding from Friday's steep losses after the state-run lender raised $1.25 billion from an overseas dollar-denominated bond sale. HDFC Bank rose half a percent and mortgage lender HDFC advanced 0.8 percent.
Energy giant Reliance Industries gained 1.2 percent on reports it may invest close to $1bln in aerospace business over the next few years. Ultratech Cement edged up 0.4 percent on reports that the company is planning a massive 5.50 million tonnes per annum integrated cement complex in Karur, Dindigul district in Western Tamil Nadu.
SpiceJet soared over 22 percent after the low-cost line returned to profitability in the first quarter compared with a loss of Rs 71.96 crore in the corresponding period last year. Rival Jet Airways jumped 7.7 percent and Kingfisher rose 2 percent.
Infrastructure stocks rallied after Prime Minister Manmohan Singh approved a detailed roadmap for seven major infrastructure projects. Larsen & Toubro, BHEL and Jaiprakash Associates rose 3-6 percent. Muthoot Finance rose 1.5 percent as the gold loan financing company reported a 30 percent rise in first-quarter net profit.
Lupin rallied 4.2 percent after entering into a marketing alliance with Novartis AG. Mangalore Refinery and Petrochemicals advanced 4.5 percent despite disappointing earnings results. Thomas Cook added 1.8 percent after reporting strong consolidated numbers in June quarter.
Havells India ended marginally higher after the electrical goods maker posted a 10 percent fall in quarterly consolidated net profit. Deccan Chronicle Holdings plunged 10 percent to a new 52-week low amid reports it is facing severe financial crisis.
Elsewhere, barring Chinese stocks, other Asian markets rose notably after ECB signalled it would buy more government bonds. European stocks rose to a four-month high and Spanish bonds extended a rally on continued hopes of US and European stimulus measures after the German and Italian leaders issued a new pledge to protect the eurozone.
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