Indian shares gain on economic growth optimism; Maruti Suzuki up 4%

India shares gained on Monday, led by Maruti Suzuki and Tata Steel while a rally in global equities supported a risk appetite

india trader

India shares gained on Monday, led by Maruti Suzuki and HDFC while a rally in global equities also supported risk appetite.

The economic survey released earlier in the day projected economic growth would be 7.0-7.5 percent in the year starting in April, up from a projected 6.75 percent for the current fiscal year.

Traders now await the government's last full-year Union budget on February 1 before the 2019 elections.

The S&P BSE Sensex added 0.65 percent at 36,283 while the broader NSE Nifty advanced 0.55 percent to 11,130.

Among the top Sensex gainers, Tata Consultancy Services gained 2.8 percent, Maruti Suzuki advanced 3.6 percent, HDFC added 3.5 percent while Hero MotoCorp was up 2.2 percent.

Maruti Suzuki India gained after its board approved a change in the way it calculates royalties that will result in lower payments for new models.

Avenue Supermarkets climbed 2 percent after the company posted a near 66 percent jump in its net profit.

But Dr. Reddy's Laboratories lost 6 percent after the company reported a 28 percent drop in its net profit for December quarter.

Meanwhile, Asian shares extended rally following a surge in Wall Street, with the Dow closing at fresh record highs on Friday amid upbeat corporate earnings.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4 percent, aiming for a 12th straight session of gains. It is up 8 percent for the year so far. Japan's Nikkei rose 0.5 percent as the yen eased a little, while South Korea notched a record, Reuters data showed.

This article was first published on January 29, 2018