Published: February 6, 2012

MUMBAI: Indian shares rose for the fifth straight session on Monday, ending 0.58 percent higher, after last week’s robust US jobs data helped improve risk appetite, but the rally in the local market is expected to take a breather soon.

The main 30-share BSE index closed up 102.35 points at 17,707.31, with 21 of its components advancing.

The benchmark has gained nearly 15 percent this year, with foreign funds pouring more than $3 billion into Indian equities. In 2011, the index fell a quarter as foreign portfolio investors pulled out a net $500 million.

“There is optimism, retail investors are coming back to the market. However, this is nothing to be thrilled about, we are only recovering the lost ground,” said Arun Kejriwal, strategist at research firm KRIS.

“But this is a worrisome trend, as during this period, nothing much has happened which justifies the optimism of this magnitude,” he said.

Bank stocks led the rise, with State Bank of India rising 2.83 percent and ICICI Bank ending up 1.28 percent.

“Most of the banks have come out with good results,” said Deven Choksey, managing director of brokerage K.R. Choksey. Expectations that the central bank will cut interest rates also helped bank stocks, he added.

Most auto stocks also ended higher, with carmakers Tata Motors and Maruti Suzuki rising 1.66 percent and 0.96 percent, respectively. The 50-share NSE index ended up 0.67 percent at 5,361.65. In the broader market, there were 976 gainers against 486 losers on volume of 986 million shares.

News Categorization:

Money