By Abhishek Vishnoi
MUMBAI (Reuters) - The BSE Sensex rose on Monday to its highest in nearly three years as Larsen & Toubro surged after the company maintained its revenue guidance for this fiscal year, while sentiment was also boosted as foreign investors remained net buyers for an eleventh consecutive session.
Foreign institutional investors bought Indian shares worth 17.24 billion rupees on Friday, marking their biggest single-day buying in over a month, and bringing the total to 92.82 billion Indian rupees in eleven sessions, regulatory data show.
Gains also tracked global shares that rose to five-year highs as investors looked ahead to a deluge of U.S. data for clues on when the Federal Reserve will begin scaling back its stimulus.
Traders say so far foreign flows and better-than-expected quarterly earnings have offset concerns that the Reserve Bank of India might raise interest rates in its next monetary policy review on October 29.
"Surprisingly FII money is coming despite industry deceleration. There are a lot of questions and concerns on macro but so far the answer has been only liquidity," said G. Chokkalingam, managing director and chief investment officer at Centrum Wealth Management.
RBI cutting short term liquidity rates has been a silver lining as well, added Chokkalingam.
The benchmark BSE Sensex rose 0.05 percent, or 11 points, to end at 20,893.89, its highest close since November 2010.
The broader Nifty rose 0.25 percent, or 15.60 points, to end at 6,204.95, closing above the psychologically important 6,200 level.
Larsen and Toubro Ltd
Housing Development Finance Corp Ltd
Zee Entertainment Enterprises Ltd
Asian Paints Ltd
Hindalco Industries Ltd
Last week Hindalco said it was being investigated in a coal block allocation case, adding it had followed every process required in the coal block allocation procedure.
Among stocks that fell, technology shares declined on profit-taking after touching record highs last week. HCL Technologies Ltd
Shares in UltraTech Cement Ltd
(Editing by Anupama Dwivedi)