Indian shares rose for the fifth straight session on Monday, ending 0.58 percent higher, after last week's robust US jobs data helped improve risk appetite, but the rally in the local market is expected to take a breather soon. The main 30-share BSE index closed up 102.35 points at 17,707.31, with 21 of its components advancing.
The benchmark has gained nearly 15 percent this year, with foreign funds pouring more than $3 billion into Indian equities. In 2011, the index fell a quarter as foreign portfolio investors pulled out a net $500 million. "There is optimism, retail investors are coming back to the market. However, this is nothing to be thrilled about, we are only recovering the lost ground," said Arun Kejriwal, strategist at research firm KRIS.
Bank stocks led the rise, with State Bank of India rising 2.83 percent and ICICI Bank ending up 1.28 percent. Most auto stocks also ended higher, with carmakers Tata Motors and Maruti Suzuki rising 1.66 percent and 0.96 percent, respectively. Piramal Healthcare closed down 1.14 percent after rising more than 7 percent. The drugmaker said on Saturday it would buy a 5.5 percent stake in Vodafone's India unit from Essar for 30 billion rupees.
Hindustan Unilever fell 3.57 percent, despite reporting a better-than-expected net profit. The consumer goods maker lowered its spending on advertising and promotions in the quarter, raising concerns it may not be able to hold on to its market share. The 50-share NSE index ended up 0.67 percent at 5,361.65. In the broader market, there were 976 gainers against 486 losers on volume of 986 million shares.