Mumbai: The S&P BSE Sensex and CNX Nifty rose on Monday, led by gains in defensive stocks such as ITC Ltd on worries the selling spree by foreign investors might continue till year-end, while higher Asian shares underpin the broader market.

Foreign investors sold nearly $1 billion worth of shares over nine consecutive sessions of selling, amid a brewing financial crisis in Russia and a crude oil slump, regulatory data show. They still remain net buyers of Indian equities worth $16.5 billion in 2014 so far.

Volatility may rise due to expiry of equity derivatives on Wednesday, while progress on key reforms such as the opening up of insurance and coal sectors and tabling of a Bill on nationwide sales tax in Parliament’s winter session that ends on Tuesday are key ahead of the budget in February.

Asian shares took their cues from Wall Street and kicked off a holiday-shortened week on a strong footing on Monday. MSCI’s index of Asia-Pacific shares outside Japan extended gains and was up 1.1%.

“Value-buying by domestic investors is supporting the market on hopes the insurance bill and GST would go through during the winter session itself," said Deven Choksey, managing director at K.R. Choksey Securities.

The Sensex closed 1.21%, or 329.95 points, higher at 27,701.79, while the Nifty rose 1.20%, or 98.80 points, to 8,324.

ITC rose 1.35% to 374.50, Hindustan Unilever Ltd (HUL) was up 1.64% to 767 while in utilities, NTPC Ltd rose 2.44% and GAIL India Ltd rose 2.64% to 446.50.

Select lenders such as State Bank of India (SBI) also gained as Prime Minister Narendra Modi may consider using an executive order to push through laws overhauling the insurance and coal sectors. Shares of SBI rose 1.12% to 307.65.

Among other gainers, Mahindra and Mahindra Ltd advanced 4.09% to 1,272.40, while Coal India Ltd added 3.61% to 390.15.

Among losers, Hindalco Industries Ltd fell 1.17% to 155.80, while Larsen and Toubro Ltd fell 0.57% to 1,523.85.

Among the BSE sectoral indices, power index was the top gainer, up 1.48%.

Jindal Stainless Ltd rose 7.92% to 32.70 after the company said it will consider business reorganization on 25 December.

IVRCL Ltd rose 4.76% to 15.40 after the company said in a notice to BSE that it got an order worth 1,255.67 from Karnataka Neeravari Nigam Ltd.

SpiceJet Ltd rose 17.09% to 18.50 after the company said most of its flights were on schedule since Sunday. The airline is operating 124 flights with an on-time performance of 90%, the company said in a PTI report.

Electrosteel Steels Ltd fell 7.07% to 4.34, while Electrosteel Casting Ltd fell 10.37% to 16.85 after a news report said that the Central Bureau of Investigation (CBI) has registered a case against Electrosteel Castings and associate company Electrosteel Steel for alleged criminal conspiracy and cheating in acquiring a coal block mine in Jharkhand.

Videocon Industries Ltd rose 4.22% to 165.45 after the company said in a notice to BSE that it will issue 15.7 million global depository receipts (GDRs) amounting to $45.22 million to LLIC S.a.r.l., on a private placement basis. Application will be made for the GDRs to be listed on the Luxembourg Stock Exchange, the company said.

DLF Ltd rose 1.33% to 133.75 after a news report said that the company has explored options to monetize some commercial assets worth about $500 million, or 3,000 crore, with a clutch of global investors to allay concerns about the company’s fund-raising flexibility in the face of a regulator ban.

Since the beginning of this year, the Sensex has gained 29.7%, while foreign institutional investors have bought $16.45 billion from local equity markets and $26.18 billion from the debt market.

Abhishek Vishnoi works with Reuters.