“Better-than-expected earnings, buoyant global markets and a favorable outlook on the monsoon led to the rally,” Prateek Agrawal, chief investment officer at ASK Investment Managers Pvt., told Bloomberg. “People are expecting the earnings trajectory to improve this fiscal year and beyond.”

Related: India ETFs Could Regain EM Leadership Role

The agricultural sector could enjoy increased rains as showers in the June to September season are expected to be 109% of the mean of 35 inches, the highest since 1994 and more than the 105% previously predicted, according to Skymet Weather Services Pvt.

“Monsoon is one major positive sentiment driver and global markets are also looking calm,” Rikesh Parikh, vice-president of equities at Motilal Oswal Securities, told TheHinduBusinessLine.

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