Mumbai,  The Indian equity indices -- S&P BSE Sensex and NSE Nifty50 -- continued their gaining streak from 2021 and settled higher on Monday, the first trading session of 2022 on the back of fresh inflows of foreign funds and positive global cues.

The FPIs pumped in Rs 902.64 crore on the BSE, NSE and MSEI in capital market segment. Consequently, the S&P BSE Sensex closed at 59,183.22 points, up by 929.40 points or 1.60 per cent from its previous close.

Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) rose to 17,625.70 points, higher by 271.65 points or 1.57 per cent from its previous close.

Initially, the two indices opened with a small gap up and kept rising steadily.

Globally, Asian stock markets were largely up on Monday. The European shares hit all-time highs starting the year in an upbeat mood on hopes of steady economic recovery despite a surge in Covid-19 cases due to the Omicron variant.

On the domestic front, activity across India's manufacturing sector showed an expansion trend but at a slower pace than the previous month.

Amongst sectors, realty, oil and gas, metals, capital goods and bank indices gained the most while healthcare was the only index that ended in the negative.

"Nifty has reached a key resistance level in the sharp up move seen lately. 17,697-17,758 could be a key resistance area for Nifty while 17,379 is a key support," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Daily technical indicators are overbought and may need cooling down by consolidation or correction."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Domestic bourses kicked off the New Year on a strong footing supported by banking, auto and IT stocks, following positive cues from global markets. Auto stocks were in focus today as investors digested the mixed auto sales numbers amid the ongoing chip shortage."

"India's Manufacturing PMI continued to be in the expansion zone at 55.5 in December supported by strong momentum in production and new orders, although the growth was slower on a sequential basis."