Indices build on Friday’s base, make 0.7% gain

Two of India's leading indices advanced nearly 0.7% on Monday, consolidating over Friday's gains, as the continued rebound in Adani Group stocks strengthened investor sentiment. Benchmark indices gained for the second consecutive session to their two-week highs - recovering from the sell-off in the nine of the 10 sessions prior - led by technology, automobile, and energy shares. The Sensex touched nearly 60,500 and the Nifty almost hit 17,800 early on before giving up some of its gains.

The Sensex advanced 415.49 points, or 0.69%, to 60,224.46. The Nifty advanced 117.10 points, or 0.67%, to close at 17,711.45. Both indices have gained over 2% in the previous two sessions, adding nearly ₹5.5 lakh crore in investor wealth.

Indian markets are shut Tuesday for Holi.

"We have to see if the Nifty is able to breach 18,000-18,100 levels," said Deepak Jasani, head, retail research, HDFC Securities.

"There are no fresh triggers and the markets are mimicking the movement of a pendulum. This is neither a relief rally nor a trend reversal as concerns over inflation and interest rates as well as geopolitical concerns prevail."

On Monday, foreign portfolio investors (FPIs) net bought shares in the cash segment worth ₹721.37 crore while domestic institutions bought shares worth ₹757.23 crore, according to provisional stock exchange data.

Oil and gas shares advanced for the fourth straight session, rising nearly 5%. Shares of upstream firms such as ONGC, Oil India, Mangalore Refinery & Petrochemicals, Chennai Petroleum and Reliance Industries surged as much as 4%, while gas distribution companies such as Mahanagar Gas surged as highs as 9% after the government slashed windfall tax on export of diesel.

Gains in banking and financials have also lent support to Indian equities of late.

Concerns over the exposure of Adani Group companies to the banking sector slightly receded last week on the back of the Rs 15,446-crore, or $1.87-billion, fundraising exercise to US-based investment firm GQG Partners.