India’s benchmark Sensex and the NSE Nifty 50 Index closed at all-time highs, after capping their best quarter since 2014, boosted by gains in Reliance Industries and Larsen & Toubro.
The BSE Sensex closed higher by 290 points, or 0.98%, to 29,910 while the Nifty 50 rose 64 points, or 0.70%, to 9,238 yesterday. 
Reliance rallied 4.1% to its highest closing price since January 2008 after converting more than 72mn of its free mobile-phone service subscribers to paying users. Markets will be shut today for a public holiday.
Larsen rose 5.5% to close at its highest price since August 2015. The company will see additional benefits from “macro tailwinds of industrial capex announcements” in the financial year through March 2018, Jefferies India said in an investor note yesterday. The broker increased the 12-month price estimate to Rs2,000 from Rs1,750 and kept its buy rating on the stock.
“Strong inflows from mutual funds are providing support to the market and have the potential to take it to a further high,” Anil Ahuja, chief executive at Singapore-based IPEplus Advisors, said by phone. Investors will also focus on earnings for the financial year that runs through March 2018 for guidance, he said.
Indian funds have been net buyers of local stocks for seven straight months through February, which included a record Rs138bn ($2.1bn) purchase in November, according to data compiled by Bloomberg.
Eleven of the 13 sector gauges compiled by BSE rallied, led by the S&P BSE Capital Goods Index’s 3.5% gain.
Meanwhile, activity in India’s manufacturing sector expanded at the fastest pace in five months in March as output and new orders accelerated, a private survey showed yesterday. “It’s a combination of FII (foreign institutional investor) liquidity, which is back, and the general atmosphere is as positive as can be for the market,” said Jayant Manglik, president of retail distribution at Religare Securities.
The bonds also rallied, sending the benchmark 10-year bond yield down as much as 14 basis points to 6.55%. It was last trading at 6.60%. Reliance Industries jumped as much as 4.5% to its highest since May 2008 after its telecoms unit Reliance Jio signed up 72mn paying customers.
Rival Bharti Airtel fell as much as 3.3%, while Idea Cellular shares were down as much as 1.6%. Infosys fell as much as 1.5% after founder N R Narayana Murthy criticised a salary hike given to chief operating officer Pravin Rao, raising concerns about disputes between founders and the board at the firm.
Dr Reddy’s (DRRD) +4.3% as ET Now reported yesterday that US FDA has no major observations yet for company’s Srikakulam plant; inspection may end today.
Unitech (UT) -8.9% as PTI reported on April 1 that its managing directors were arrested; steepest on S&P BSE 500 Index. Indoco Remedies (INDR) -8.2% to lowest since August 2014; Goa plant gets FDA warnings. 
The rupee yesterday erased all the morning gains and closed weaker against the US dollar tracking losses in Asian currencies market.
The rupee closed at 65.03, down 0.25% from its Friday’s close of 64.85. The rupee opened at 64.79 a dollar and touched a high of 64.76, a level last seen on October 19, 2015.
Traders are cautious ahead of the Reserve Bank of India’s (RBI) bi-monthly two-day policy meeting on April 5-6. 
Traders are likely to take more cues from the meeting between China’s president Xi Jinping and US President Donald Trump on Thursday and US non-farm payrolls data on Friday.
So far this year, foreign institutional investors have bought $6.16bn and $4.40bn from local equity and debt markets, respectively.
The 10-year bond yield closed at 6.651%, compared to its previous close of 6.68%. Bond yields and prices move in opposite directions.
Asian currencies were trading lower. Thai baht was down 0.06%, Malaysian ringgit 0.05%, Singapore dollar 0.04%, Japanese yen 0.03%, Indonesian rupiah 0.03%. However, South Korean won was up 0.28%, Philippines peso 0.07%, Taiwan dollar 0.05%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.63, up 0.28% from its previous close of 100.35.