Indian shares gained for a seventh straight day on Thursday in a volatile session that saw metals and mining companies such as Hindalco Industries and Jindal Steel and Power surging after the successful completion of the country's first auction to sell mines.
The auction follows a court cancellation of all previous licences and the initial bidding suggests companies are keen to secure supplies as the economy improves.
The 30-share BSE index Sensex jumped 142.01 points or 0.48 per cent at 29,462.27 and the 50-share NSE index Nifty moved up by 26.2 points or 0.3 per cent at 8,895.30.
Among BSE sectoral indices, metal index was the star-performer and was up 3.82 per cent, followed by capital goods 1.36 per cent, realty 1.06 per cent and power 0.86 per cent. On the other hand, FMCG index was down 0.9 per cent, banking 0.6 per cent, healthcare 0.08 per cent and auto 0.01 per cent.
Major Sensex gainers were SSLT 6.98%, Hindalco 2.7%, L&T 2.65%, Tata Power 2.56% and M&M 2.28%, while the top five losers were Wipro 1.36%, Tata Motors 1.1%, ICICI Bank 1.08%, SBIN 1.05% and GAIL 1.00%.
Investors remain hopeful of faster reforms in the government's 2015/16 fiscal budget, due to be presented on February 28, after Modi's party was routed in the Delhi state elections.
A report by SMC Investments and Advisors said: "Asian investors rejoiced Japanese gains as ECB is looking nearer to recovery whereas emerging economies are looking sound. US stocks gained on a strong dollar whereas earnings from abroad took a hit on strong dollar. US bourses remained steady maintaining an upward stance."
European shares edged off 7-year highs on Thursday, hit by a slide in oil prices and a mixed batch of corporate results, with disappointing updates from companies, including utility Centrica and airline Air France-KLM.
Japan's Nikkei rose 0.6 per cent to heights last seen in 2000 helped by gains in financial and shipping companies.
MSCI's broadest index of Asia-Pacific shares outside Japan was near flat with much of the region on holiday. Centres off include China, Indonesia, Malaysia, Philippines, Singapore, Taiwan and South Korea.