In the broader markets, the BSE Midcap and Smallcap indices were up 0.5% each
India's benchmark share indices rose for the fourth straight session, amid firm cues from Asia and Europe, with IT major TCS gaining the most.
The S&P BSE Sensex gained 35 points to end at 28,635 and the Nifty50 settled 29 points higher at 8,808. In the broader markets, the BSE Midcap and Smallcap indices ended up 0.5%-0.6% each. Market breadth ended strong with 1490 advances and 1254 losers on the BSE.
"Nifty ended marginally higher on Monday amid volatility, thanks to favourable cues both from the domestic and global front. Firm Asian markets led a positive start but prevailing cautiousness ahead policy meet of two major central banks, Bank of Japan and US Fed, capped upside. We reiterate our view to hold positive yet cautious approach till 8700 is intact in Nifty," said Jayant Manglik, President, Retail Distribution, Religare Securities
Meanwhile, investors are keenly awaiting signals from central banks in Japan and the US with their respective policy meets scheduled this week.
Foreign institutional investors were net buyers in equities worth Rs 661 crore on Friday, as per provisional stock exchange data.
Globally, Asian markets ended higher on Monday ahead of the meetings of central banks in Japan and the US. Further, rebound in oil prices also aided sentiment. All markets in the region trading ended with positive bias led by Taiwan. The Taiwan Weighted surged 2.7% while Hong Kong's benchmark, Hang Seng rose 0.9% and Shanghai Composite ended up 0.8% while Straits Times gained 0.9%.
European shares gained over 1% each led by bank shares while energy shares firmed up tracking gains in crude oil prices. The CAC-40, DAX and FTSE-100 were up 0.8%-1.5% each.
TCS was the top gainer up over 2% after the company in a release said that it has been recognized in the Global Dow Jones Sustainability Index 2016 for the fourth consecutive year.
ICICI Bank ended up 1.6% after the initial public offer of its insurance arm ICICI Prudential Life Insurance's IPO, worth up to Rs 6,057 crore opened for subscription today.
SBI gained nearly 1%. The state-owned banking major on Monday announced its plans to invest Rs 100 crore each for developing commercial and residential facilities.
Axis Bank ended down 1.2%. The private banking major announced revision in its Marginal Cost of Funds based Lending Rate (MCLR) with effect from 17 September 2016.
Auto shares witnessed profit taking after gains in the previous sessions. Maruti Suzuki ended 1.4%. Japanese automobile major Suzuki plans to harness the strengths of Maruti Suzuki to grow its two-wheeler business in the world’s largest market. In the two-wheeler space, Bajaj Auto and Hero MotoCorp were down 1%-1.3% each.
Among others, IFCI gained nearly 2% after the company in a release today said it will divest 100% stake in Assets Care and Reconstruction Enterprise Limited to Axis Bank for a consideration of Rs 22.72 crore.
Heritage Foods jumped 10% on reports that it is in talks with Future Group for a possible business association. However, it also clarified that there is no legal binding agreement on any business collaboration/association and all discussions at this stage are exploratory in nature.
IL&FS Transportation Networks extended gains for the fifth day post its June quarter results. The stock surged 13% after reporting a standalone net profit of Rs 17.87 crore for the quarter ended June 30, 2016 (Q1FY17). The surface transportation infrastructure company had posted a net loss of Rs 18.64 crore for the same quarter in the previous year.
Petron Engineering Construction ended locked in 20% upper circuit after the company received a Letter of Intents (LOIs) from Shree Cement, for civil work at their cement plants at Aurangabad, Bihar and at Gulbarga, Karnataka for a total contract value of approximately Rs 50 crore.
Photograph: Danish Siddiqui/Reuters