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

   

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:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

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