Nifty hits record high on optimism ahead of budget

MUMBAI Fri Jul 4, 2014 4:35pm IST

A broker monitors share prices while trading at a brokerage firm in Mumbai May 13, 2014. REUTERS/Danish Siddiqui/Files

A broker monitors share prices while trading at a brokerage firm in Mumbai May 13, 2014.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

MUMBAI (Reuters) - The Nifty hit a record high on Friday as blue chips such as Reliance Industries(RELI.NS) rose on optimism that Prime Minister Narendra Modi will deliver a fiscally prudent budget next week.

Investors are betting that Modi and Finance Minister Arun Jaitley will unveil next week a credible budget that seeks to raise revenue, including from sales of state-run firms, while keeping spending under control.

Foreign institutional investors, who have been the backbone of the 23 percent gain in the broader Nifty so far this year, bought Indian shares worth 9.51 billion rupees ($159.27 million) on Thursday, exchange and regulatory data showed.

"Most investors, including FIIs, are putting new money in the market on hopes the budget will lead the way to a revival in the economy. Build-up of positions has already started," said Deven Choksey, managing director at KR Choksey Securities.

"The budget may focus on revival in growth and fiscal consolidation. We are bullish and expect the Nifty to trade between 7,500 and 8,000 in the near term,"

The benchmark BSE Sensex closed 0.54 percent higher at record 25,962.06. It gained 3.4 percent this week after falling in the previous three weeks.

The broader Nifty ended 0.48 percent higher at record 7,751.60, gaining 3.2 percent this week.

Blue chips were among the leading gainers. Reliance Industries Ltd (RELI.NS) ended 2.5 percent higher, marking its biggest single-day gain since June 6.

Other gainers included HDFC Bank (HDBK.NS), which was up 2.4 percent, and NTPC Ltd (NTPC.NS) which gained 0.8 percent.

Investors also hedged their risk by buying defensives such as drug makers. Dr Reddy's Laboratories Ltd (REDY.NS) rose 1.5 percent and Sun Pharmaceutical Industries Ltd (SUN.NS) ended 0.4 percent higher.

Among other blue chips, Bharti Airtel Ltd (BRTI.NS) gained 0.7 percent after the Reserve Bank of India increased limit for overseas investors to buy shares in the company.

However, recent outperformers such as metal stocks were under selling pressure. Hindalco Industries Ltd (HALC.NS) ended 0.3 percent lower, adding to its 2.52 percent fall on Thursday. The stock still gained 7.7 percent this week. Tata Steel Ltd (TISC.NS) ended 0.5 percent lower.

(Reporting by Indulal PM; Editing by Subhranshu Sahu)

FILED UNDER:

REUTERS SHOWCASE

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Read | Related 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Hughes Dies

Hughes Dies

Australia's Phil Hughes dies after being hit by ball  Full Article 

OPEC Meeting

OPEC Meeting

Low expectations for oil output cut  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Google in Europe

Google in Europe

Insight - Behind Google's Europe woes, American accents  Full Article 

India-focused Funds

India-focused Funds

India-focused hedge funds up over 40 pct YTD - HFR  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage