Mumbai, June 19 (IANS) Cheered by positive global cues and healthy buying in banking, metal and capital goods stocks, the Indian equity markets surged on Monday, the 30-scrip Sensitive index (Sensex) of the BSE closing at another fresh high.

The Sensex closed at a new high of 31,311.57 points -- up 255.17 points or 0.82 per cent from its previous close. It had closed at a high of 31,309.49 points on June 5.

Shares of major banks rose and added to the gains on reports that Prime Minister Narendra Modi will review the measures taken by the Reserve Bank of India (RBI) to resolve the non-performing assets (NPA) issue of the Indian state-run banks. The Bank Nifty index scaled a record high of 23,806.65 points.

The wider Nifty of the National Stock Exchange (NSE) rose by 69.50 points or 0.72 per cent to close at 9,657.55 points.

Besides, investors' sentiments were buoyant after the GST Council on Sunday unanimously agreed on the July 1 rollout of the Goods and Services Tax (GST) regime.

However, the BSE market breadth was bearish -- with 1,467 declines and 1,218 advances.

In terms of the broader markets, the BSE mid-cap and small-cap indices underperformed the Sensex. The S&P BSE mid-cap index was a tad up by 0.07 per cent, while the small-cap index was a bit lower by 0.08 per cent.

"Positive global cues aided the market sentiments. Gains in index heavyweight ITC and metal stocks boosted key benchmarks higher, while selling in index pivotal Infosys capped gains," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Major Asian markets have ended on a positive note. European indices like FTSE 100, CAC 40 and DAX traded higher," he added.

Anand James, Chief Market Strategist, Geojit Financial Services, said: "Positive cues from Europe steadied nerves at the start of the week, and with bad loan resolution efforts gaining traction, banking stocks led stocks higher. Meanwhile, potential for re-rating will vest on how swiftly would concerns over GST dissipate."

On the currency front, the rupee closed flat at 64.42 to a US dollar from its previous close.

Sector-wise, the S&P BSE banking index surged by 255.83 points, the metal index by 209.57 points, and the capital goods index by 129.69 points.

On the other hand, the S&P BSE healthcare index fell by 67.24 points, the consumer durables index by 35.69 points and the realty index by 6.71 points.

Major Sensex gainers on Monday were: Tata Steel, up 3.43 per cent at Rs 519.30; Adani Ports, up 3.05 per cent at Rs 373.70; Axis Bank, up 1.94 per cent at Rs 519.90; Power Grid, up 1.67 per cent at Rs 213; and Larsen and Toubro, up 1.59 per cent at Rs 1,754.25.

Major Sensex losers were: Infosys, down 1.17 per cent at Rs 929.45; Sun Pharma, down 0.77 per cent at Rs 525.05; Dr. Reddy's Lab, down 0.76 per cent at Rs 2,656.85; Tata Motors, down 0.70 at Rs 452.30; and Coal India, down 0.59 per cent at Rs 253.90.

--IANS

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