The benchmark indices settled at record closing highs on Monday as state-owned lenders extended a rally from the last week sparked by the government’s announcement of a Rs 2.11 lakh crore recapitalisation plan, while energy firms gained on higher crude prices.
State-run lenders drove the indices higher, with the Nifty PSU bank index rising as much as 4.3%. Its 30% gain last week was much larger than a 0.8% rise in the Nifty private bank index over the same period.
The Nifty50 rallied as much as 61 points to hit its fresh high of 10,384, while the Sensex rose 184 points to log its record high of 33,340 in intraday trade.
Overseas, European markets were trading sideways as earnings rolled in, while Asian markets climbed as the euro loitered around a 3-month low after the European Central Bank’s decision to extend its stimulus further fattened the dollar’s yield advantage.