Indian shares set record closing highs as stocks of banks grow

Led by gains in banks as strong corporate earnings raised hopes of a faster economic recovery, Indian shares closed at all-time high today. Domestic stock indexes rallied more than 12 per cent in February on a high-spending federal budget, better-than-expected December-quarter corporate earnings and strong foreign fund inflows.

On Monday, the NSE Nifty 50 index ended 1 per cent higher at 15,314.70, while the S&P BSE Sensex closed 1.18 per cent higher at 52,154.13.

The top seven contributors to the Nifty 50's advance on Monday were banking and financial firms, with HDFC Bank and ICICI Bank the top boosts, gaining 2.2 per cent and 4.2 per cent respectively. Banking stocks jumped 3.32 per cent.

December-quarter profits for Indian companies surged 49 per cent year-on-year, the biggest increase in four quarters, a Refinitiv data for 220 companies with at least $500 million in market value showed.

Among earnings-driven moves, Deepak Nitrite and Dilip Buildcon rose more than 6 per cent each after the companies posted higher profits.

Indiabulls Housing Finance fell 6.3 per cent and Timken India shed 9.1 per cent on quarterly profit declines.

Helping sentiment was buoyant global markets which rose for the 11th day in a row to hit a fresh peak on optimism about the rollout of COVID-19 vaccines and new fiscal aid from Washington.