Extending gains for the third straight session, the benchmark indices rose nearly 1% as consumer goods makers such as ITC
surged on hopes the newly implemented Goods and Services Tax (GST) would reduce retail prices and boost sales.
At 2:07 pm, the S&P BSE Sensex
was trading at 31,206, up 285 points, while the broader Nifty50 was ruling at 9,605, up 85 points.
In the broader market, the S&P BSE Midcap and the S&P Smallcap indices rallied 0.9% and 1%, respectively.
Market breadth depicted strength. There were more than two gainers against every loser on BSE. 1,712 shares rose and 658 shares fell. A total of 135 shares were unchanged.
FMCG index climbed as much as 5.6% to an all-time high with Hindustan Unilever gaining over 1% to Rs 1,099 on the NSE.
Cigarette maker ITC
was among the top gainers, rising as much as 9.62% to a record high of Rs 354.80. It drove the Nifty
index higher, contributing nearly 45 net points to the index.
Carmaker Maruti Suzuki India gained as much as 1.8% after posting a 7.6% jump in June vehicle sales on Saturday, while commercial vehicles maker Ashok Leyland climbed to its highest in a year after reporting an 11% rise in June total sales.
Shares of fertiliser makers surged after GST
rate for fertilisers was slashed to 5% on Friday. Shiva Global Agro Industries surged as much as 17.8% to Rs 88 on the BSE. Chambal Fertilisers and Chemicals was up as much as 4% while Nagarjuna Fertilizer & Chemicals and Madras Fertilizers gained more than 3%.
Overseas, Asian markets
hardly budged on the first day of a new quarter while expectations of credit tightening by the world's major central banks kept global bond markets
MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.1%, staying within a stone's throw of its two-year peak hit last week.
Japan's Nikkei ticked up 0.2% while US stock futures gained 0.2%.
(With inputs from Reuters)