Sensex Extends Record Run, Nifty Eyes 9,700

Indian shares extended gains for the second straight day on Monday with both the benchmark indices -Sensex and Nifty - ending at fresh record highs. The Sensex closed 36.20 points higher at 31,309.50 while the NSE benchmark Nifty settled 21.6 points or 0.22 per cent higher at 9,675 led by buying in banking and IT shares. The banking sub-index of Nifty added 0.35 per cent, while the Nifty IT, NSE's sub-index for IT stocks closed 0.48 per cent higher.

However, gains were capped ahead of a RBI policy meeting later this week.

The Reserve Bank of India is likely to keep interest rates unchanged at its policy review on Wednesday, but with inflation well below target its policy statement, it is likely to sound less hawkish than when the monetary policy committee last met, a Reuters poll showed.

"I don't see any major triggers for the market," said Dipen Shah, vice president and head of private client group research at Kotak Securities.

"People are just waiting and watching."

Among Nifty stocks, Indiabulls Housing Finance was the top gainer rising 3.38 per cent followed by Yes Bank, Bharti Infratel, IOC , Bajaj Auto and TCS, which rose between 1.5-2.9 per cent.

Meanwhile, Coal India was the top loser in Nifty, down 1.58 per cent followed by Ultratech Cement, Infosys, Gail India, Lupin and Dr Reddy's Lab, which fell between 0.7-1.5 per cent each.

Smallcap stocks outperformed the broader indices. The BSE Smallcap index gained 0.64 per cent compared to 0.22 per cent gain in the broader Nifty. (With agency inputs)