Sensex, Nifty End At Record Closing High

The BSE Sensex and Nifty surged on Monday to record highs as blue chips such as Coal India and Larsen & Toubro continued to rally on hopes of wide-ranging reforms by the new Narendra Modi government. Foreign institutional investors bought a net Rs 1,283 crore worth of shares on Friday, a sixth consecutive session of buying that brought their total so far this year to $8.5 billion, according to exchange and regulatory data. Expectations of reforms and optimism about a recovery in the domestic economy have sent domestic shares up 21.4 per cent so far this year, outperforming a 5 per cent gain in the broader MSCI Asia-Pacific index excluding Japan. "It's a strong bull run what we are seeing now. Union budget would be the next key event, but that would not be more than a financial statement," said Jagannadham Thunuguntla, chief strategist at SMC Global Securities. "What the market is expecting is a key decision making process and early signs show that the (government's) direction is right. Unless something dramatic happens, the market is set for further upmove," said Thunuguntla. The Sensex rose as much as 0.98 per cent to hit a record high of 25,644.77, surpassing the highest level posted on Friday. The index closed 0.72 per cent higher at 25,580.21. The Nifty gained as much as 1.2 per cent to hit an all-time high of 7,673.70. The index closed up 0.94 per cent at 7,654.60. Shares in Larsen & Toubro (L&T) closed 3.6 per cent higher, gaining for the sixth straight session as investors hope that the new government's reform agenda would mainly focus on infrastructure sector, where L&T is a major player. The stock has gained 63.7 per cent so far this year. Shares in Bajaj Auto jumped 5.5 per cent, the highest single-day rise since Aug. 30, 2013, while Coal India Ltd gained 5.8 per cent to Rs 413.20. Fertilizer stocks rallied after government official told Reuters that India plans to raise the price of urea, the fertiliser most used by its farmers, by at least 10 per cent. Shares in Rashtriya Chemicals and Fertilizers gained 5.5 per cent, while Chambal Fertilisers and Chemicals Ltd rose 9.4 per cent. Among other gainers, real estate stocks rose, with BSE realty index closing 6.01 per cent higher. Shares in DLF ended 3.5 per cent higher, while Unitech Ltd gained 17.03 percent. Oil and Natural Gas Corp was among the laggards, losing 2.7 per cent as investors preferred to take profit after the stock jumped 12.1 per cent to hit an all-time high. Shares in Infosys continued to be under pressure. The stock closed 0.6 per cent adding to its 1.3 per cent fall on Friday on concerns after some key resignations. . Copyright: Thomson Reuters 2014

Sensex, Nifty End At Record Closing High

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