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Indian shares rose for a third consecutive session on Monday to close at their highest in nearly a month, drawing comfort after foreign investors bought shares in the previous session, ending a 13-day selling streak.
Foreign institutional investors bought shares worth Rs 1,124 crore ($189.15 million) on Friday, snapping 13 days of sales, while they also bought Rs 1,691 crore ($284.56 million) worth of index futures, data from the National Stock Exchange showed, raising hopes this week's rally would continue. However, analysts expressed doubts about whether the gains could sustain after volumes on the NSE stock index on Monday fell to their lowest since June 19.
Shares could find support, should the government unveil reform measures, with expectations of action to open more sectors for foreign investment.
The benchmark BSE index rose 0.9 per cent or 181.58 points, to end at 19,577.39, its highest close since June 3. The broader NSE index rose 0.97 per cent or 56.65 points, to end at 5,898.85, gaining for a third day.
Gains were also helped as Reliance Industries rose 2.7 per cent, extending recent gains after the government recently approved a hike in gas prices. Among other blue-chips, L&T gained 3.1 per cent, while State Bank of India rose 3.2 per cent. United Spirits gained 13.4 per cent after Morgan Stanley Asia (Singapore) increased its stake in the company to 4.76 per cent from 4.02 per cent.
