Indian shares hit fresh record highs on Monday as lenders continued their rally, but gains were capped ahead of a central bank policy meeting this week. The Reserve Bank of India is likely to keep interest rates unchanged at its policy review on Wednesday, but with inflation well below target its policy statement, it is likely to sound less hawkish than when the monetary policy committee last met, a Reuters poll showed.
“I don’t see any major triggers for the market,” said Dipen Shah, vice president and head of private client group research at Kotak Securities.
“People are just waiting and watching.”
Sentiment across the globe was muted after U.S. growth in May missed expectations and after attacks in London killed at least seven people. Meanwhile, oil prices jumped after Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their ties with Qatar on Monday.
The broader NSE index rose as much as 0.25 percent to a record high of 9,677.60. It was last up 0.25 percent at 9,677.55 as of 0607 GMT.
The benchmark BSE index hit a record high of 31,353.65. Both the NSE index and BSE index have been on a record-breaking spree in the recent weeks. Lenders were among the top gainers, with Yes Bank rising 1.8 percent.
The NSE’s bank sub-index has surged about 29 percent this year up to Friday’s close, outperforming a near 18 percent gain in the benchmark NSE index, as the country tackles the non-performing loans in the banking sector.
Among other gainers, Reliance Communications rose as much as 4.6 percent after the debt-laden mobile carrier said on Friday it won a seven month reprieve from its lenders.
Shares of jewellery retailers PC Jeweller Ltd, Gitanjali Gems Ltd and Titan Company Ltd gained after the Indian government said it will tax gold and gold jewellery, silver and processed diamonds at 3 percent under Goods and Services Tax.