Nifty hits near 1-month high on fresh foreign flow hopes

MUMBAI (Reuters) - The broader Nifty rose to its highest in nearly a month, gaining for a seventh consecutive session on Monday as stocks focused on the domestic market such as Larsen & Toubro and Maruti Suzuki rose on hopes of fresh foreign allocations at the start of the year.

Foreign investors bought Indian shares worth $45.3 million on Thursday and Friday, adding to the $16.11 billion they infused in 2014, as per regulatory data.

Investors expect Prime Minister Narendra Modi's government to continue with the reforms process while fresh buying is expected ahead of the federal budget and December-quarter results.

 

The quarterly earnings season kick-starts with Infosys' results on Jan. 9.

"Most western markets are opening now after holidays, so there are incremental flows," said Deven Choksey, managing director at K R Choksey Securities.

Fund flows in the first quarter would be key. The country's budget next month would determine the direction, he added.

The broader Nifty rose 0.16 percent after earlier marking its highest level since Dec.8.

The benchmark BSE Sensex gained 0.21 percent to 27,946.05.

Credit Suisse said global linkages will drive the markets in the near term, apart from developments on the Goods and Services Tax and coal auctions front.

Larsen & Toubro gained 1.8 percent after it said unit L&T Construction won orders worth 40.06 billion rupees in December.

Citigroup has upgraded the stock to "buy" from "neutral" citing improved order inflow prospects.

Maruti Suzuki India rose 2.7 percent.

($1 = 63.3600 rupees)

(Reporting by Abhishek Vishnoi; Editing by Biju Dwarakanath)