Sensex scales 31-month high, financials gain

MUMBAI : Indian shares rose on Monday to their highest level since February 2008, with financials leading the gains, lifted by strong Asian markets.

At 11:53 a.m. (0623 GMT), the 30-share BSE index was up 1.4 percent at 18,467.27 points, with 27 components advancing.

It rose to as much as 18.478.76, its highest level in 31 months. The 50-share NSE index was up 1.4 percent at 5,554.

Data from Nomura showed foreigners preferred Indian shares amongst Asian equities in the week to Sept. 3, and invested $311 million. The benchmark index added 1.2 percent last week.

GTL Infrastructure slid as much as 5.9 percent after it said its deal with second-largest mobile operator Reliance Communications to merge their telecoms tower businesses would not take place. Reliance Communications shares edged 0.2 percent lower, but trading was choppy.

Top lender State Bank of India climbed 0.7 percent while rivals ICICI Bank and HDFC Bank rose 1.4 percent and 0.9 percent respectively. Leading mortgage lender Housing Development Finance Corp firmed 1.3 percent. Outsourcers that get most of their revenue from the United States rose after the better-than-expected US jobs data on Friday.

Sector leader Tata Consultancy Services rose 1.1 percent, while Infosys Technologies and Wipro firmed 1.7 percent and 0.6 percent respectively. Aluminium maker Hindalco Industries rose 3.4 percent after its chairman said on Friday the company plans spend $2.1 billion in the current financial year ending in March.