The Indian stock market posted gains on Monday, January 15, reaching new highs, primarily on the back of gains by lenders. Positive sentiment was driven by better-than-expected data on industrial production in November. Thus, the gauge jumped 8.4%, following a 2.0% increase in October, while analysts expected it to expand 4.4%. Meanwhile, manufacturing production picked up from 2.2% to 10.2% over the reporting period. Notably, the CPI rose 5.21% in December, while a 5.1% increase was projected. Recapping the benchmarks, the Nifty 50 advanced 0.56% to 10,741.55, and the BSE Sensex added 0.73% to 34,843.51. By 10:17 GMT, the USD/INR currency pair dropped 0.14% to 63.455, while EUR/INR advanced 0.46% to 77.8851. The 10-year government bond yield rose to 7.462%. Banking names were well bid. ICICI Bank surged 3.7%, as analysts from Morgan Stanley upgraded the target price for the bank’s shares. HDFC Bank and Kotak Mahindra Bank added 1.7% and 1.5%, respectively. Meanwhile, market cap of non-bank financial company Capital First jumped 1.0% after IDFC Bank announced that it will acquire the company for USD 1.5 bn. The daily chart shows that the BSE Sensex has broken through the upper end of Bollinger bands, while the Slow Stochastic Oscillator has been in overbought territory. As a result, a downturn can be expected in the short term. $SENSEX, S&P BSE SENSEX INDEX / D