Thirty eight stocks on the 50-scrip NSE Nifty finished the session in the positive zone The Sensex and Nifty closed at three-month highs on Friday, one day ahead of polling in Karnataka assembly elections.
The BSE benchmark index rose 289 points to close at 35,535 while the NSE Nifty settled at 10,806, up 89 points.
Advances were led by strong buying seen in banking, metal, energy and capital goods shares, with the NSE sectoral sub-indices rising more than 1 per cent each.
Domestic shares took positive cues from shares in other Asian markets, where equities tracked an overnight rally in the US.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 per cent.Thirty eight stocks on the 50-scrip NSE Nifty finished the session in the positive zone.
Among the top gainers were Asian Paints, HPCL and Vedanta, closing with gains of between 2.5 per cent and 5.5 per cent."The direction of the markets in a particular session at the moment is determined by specific stock movements due to results.
This is because the markets are rangebound," said Rakesh Tarway, head of research at Reliance Securities.Investors will also be keenly watching elections in the key southern state of Karnataka.Votes will be cast on Saturday and counting will be held on May 15.
Results will be declared later that day."Till the Karnakata election results are announced, expect the markets to turn a little volatile," Tarway added.Asian Paints Ltd hit a record high on strong March-quarter results and was among the top contributors to index gains.ICICI Bank ended over 1 per cent higher, as private banks registered a third straight week of gains.Overnight in the US, soft inflation data indicated that the Federal Reserve - the central bank of the world's largest economy - may not increase interest rates at a faster pace.
US consumer prices rose less than expected in April, indicating a moderate rise in inflation which could allow the Federal Reserve to continue gradually raising interest rates.Bharti Airtel Ltd and Idea Cellular Ltd fell 6 per cent and 12 per cent, respectively, a day after rival telecom company Reliance Jio Infocomm launched a new post-paid plan.
During the session, Idea fell to its lowest in over seven years.Fortis Healthcare fell 3 per cent, a day after the board of directors of the hospital chain accepted an investment offer from a consortium involving Hero Enterprise Investment Office and the Burman Family Office.(With agency inputs)