Mumbai: Indian stock markets advanced, led by capital goods companies and metal producers, as the benchmark index headed for its highest level in two weeks.

Larsen and Toubro Ltd (L&T), the nation’s largest engineering company, rose the most on the S&P BSE Sensex. Aluminum producer Hindalco Industries Ltd posted the biggest gain in two weeks. ICICI Bank Ltd climbed 1%.

The BSE Sensex added 0.10%, or 21.31 points, to close at 21,101.03 on Monday. The MSCI Asia Pacific Index climbed after data showed faster-than-estimated economic growth in the US and the International Monetary Fund (IMF) said it’s raising its outlook for the world’s largest economy. Global investors bought a net $835 million of local shares last week after the Reserve Bank of India (RBI) kept borrowing costs unchanged on 18 December, allaying concerns inflows may slow after the US Federal Reserve said the same day it will start unwinding stimulus.

The Sensex has climbed 9.1% this year, the best performer among the four largest emerging markets, and trades at 13.6 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s 10.6 times. BLOOMBERG

Close