Sensex Nears Record High of 25,375; ONGC, RIL Lead
The BSE Sensex traded within 120 points of its record high hit on May 16, when Narendra Modi-led BJP won a simple majority in elections. The broader Nifty traded above the key 7,500 levels and the rupee inched up to 59.15 against the dollar.
Indian markets are on a roll on hopes that the Modi-led government would take quick decision to put the economy back on track. The Nifty is up nearly 28 per cent since September 13, when Mr Modi was named as the BJP's prime ministerial candidate.
The first test of the government's intentions would be the budget, which is likely to be announced in early July.
"There are no visible near-term negatives. Investors are building portfolios ahead of the union budget, which would be the next big event. FIIs (foreign institutional investors) continue to support. The undercurrent is still positive," said Suresh Parmar, head of institutional equities at KJMC Capital Markets.
Indian stock markets have been supported by heavy overseas buying. According to Deutsche Bank, India has received an impressive $8 billion in equities and $7.7 billion in debt year-to-date. Foreign portfolio investors bought Indian shares worth Rs 1,369 crore on Thursday.
Positive global cues have also sentiments on the Dalal Street, analysts say.
Upstream oil and gas companies led the gains today, with Oil and Natural Gas Corp rising over 7 per cent and Reliance Industries advancing 2.5 per cent. (Read more)
Among other blue-chips, State Bank of India gained 1.25 per cent.
However, shares in Infosys fell 2.5 per cent after a senior executive quit the company. (Read the full story here)
Other IT stocks such as TCS and HCL Tech also witnessed selling pressure amid a strengthening in the rupee.
Recent gainers such as metal stocks saw profit taking. Sesa Sterlite fell over 3 per cent, while Hindalco and NMDC traded with over 1 per cent losses.
As of 01.05 p.m., the Sensex traded 200 points higher at 25,218, while the Nifty rose 53 points to 7,527.
(With inputs from Reuters)