Indian shares edged higher on Monday, with consumer stocks such as ITC Ltd leading, as investor sentiment got a boost after the government last week finalised rates for the upcoming goods and services tax. "Nifty is likely to touch lower levels near 9,400-9,390 in the next trading session where a close below could prove even worse for the near-term", Sushanshu added.
The broader NSE index closed 0.11 percent higher at 9,438.25, while the benchmark BSE index ended 0.35 percent up at 30,570.97.
The GST Council has kept commonly used products like hair oil, soaps and toothpaste at 18%. The index had gained 30 points on May 19.
The S&P FMCG index witnessed a surge of 297.25 points or 3.09 per cent during intra-day trade, led by ITC scrip with a surge of 6.21 per cent in its price. On Friday, the Sensex had closed at 30,464.92, up by 30.13 points, while the Nifty50 ended the day at 9,427.90, down by 1.55 points.
Among BSE sectoral and industry indices, FMCG rose 3.09 per cent followed by consumer durables 0.61 per cent, capital goods 0.50 per cent, teck 0.34 per cent, IT 0.34 per cent and telecom 0.12 per cent, while healthcare fell by 1.64 per cent, utilities 1.33 per cent, realty 1.29 per cent, oil&gas 1.28 per cent and power 1.23 per cent.
Of the 30 Sensex stocks, L&T surged 1.61 per cent, Adani Ports (up 1.36 per cent), Tata Motors (up 1.23 per cent), HDFC Bank (up 1.02 per cent), TCS (0.90 per cent), Reliance Ind (up 0.40 per cent), Wipro (up 0.27 per cent), Axis Bank (0.24 per cent) and Infosys (0.19 per cent).
State Bank of India, which posted two-fold jump in net profit for the last quarter of FY2016-17, was trading down by over 1 per cent due to profit booking by investors after a recent rally in the stock.
In the Asian region, the key indices such as Hong Kong's Hang Seng rose 0.86 %, Japan's Nikkei by 0.45 %, while Shanghai Composite finished 0.48 %.
Second-line stocks succumbed to heavy selling pressure, with the BSE mid-cap and small-cap indexes ending down over 1 percent each. SBI lost 4.46 %, Bank of Baroda fell by 3.13 %, Allahabad Bank lost 4.78 %, Syndicate Bank shed 4.95 % and IDBI Bank fell 3.99 %. In the Europe, Paris CAC rose 0.07 %, while Frankfurt's up 0.04 % in their early deals.