Indian shares ended higher for a ninth straight session on Tuesday, marking their longest winning streak in over three years, as consumer stocks gained on forecasts of average monsoon this year, reports Reuters.
After two years of normal monsoons, the India Meteorological Department on Monday predicted yet another year of normal rains, raising the possibility of higher farm and economic growth in Asia's third-biggest economy.
The broader NSE index ended 0.19 per cent higher at 10,548.70, marking its longest winning streak since late January 2015.
The benchmark BSE index posted its longest winning run since early September 2014, after closing 0.26 per cent higher at 34,395.06.
The Nifty FMCG index ended nearly a per cent higher, with Kit Kat chocolate maker Nestle India Ltd and diversified consumer goods manufacturer Hindustan Unilever Ltd hitting their record highs during the session.
An earlier report adds: Indian shares were largely unchanged on Tuesday after an eight-session winning run as gains in financials and utilities were offset by losses in information technology stocks.
The broader NSE index was down 0.12 per cent at 10,516.15 at 0607 GMT while the benchmark BSE index was 0.06 per cent down at 34,285.34.
After two years of normal monsoons, the India Meteorological Department (IMD) on Monday predicted yet another year of normal rains.
Financial heavyweights such as Housing Development Finance Corp Ltd and ICICI Bank Ltd gained over 1 per cent each while information technology stocks such as Wipro Ltd witnessed selling pressure.
Expectation of normal monsoon and a shift in government spending towards rural areas bodes well, Goldman Sachs said in a note, maintaining its FY19 real GDP growth forecast at 7.6 per cent.
Another normal monsoon and the government's focus on rural development implies that rural income levels could rise faster in FY19, CLSA said in a note, adding one of the key beneficiaries of this would be Mahindra and Mahindra Ltd.
Shares of the automaker gained as much as 2.1 per cent to hit a record high of 818.8 rupees.
"There's some secular buying taking place in the markets. Consumption theme, including retail and FMCG, are playing out very well after monsoon forecast," said Krish Subramanyam, co-head and equity adviser at Altamount Capital.
Shares of PSU banks gained and the Nifty PSU Bank index looked set to halt a 4-session losing streak.
Power Grid Corp of India Ltd gained for a third straight session and was the top per centage gainer on both the indexes.
Shares of Nestle India Ltd, maker of Maggi instant noodles and Kit-Kat chocolates, rose as much as 2.2 per cent to a record high after brokerages Goldman Sachs and CLSA raised their target prices.
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