BSE Sensex, Nifty hit record highs, insurers gain

MUMBAI Thu Jul 24, 2014 7:35pm IST

1 of 2. A broker monitors share prices while trading at a brokerage firm in Mumbai May 13, 2014.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   
Border Security Force (BSF) soldiers ride their camels as they rehearse for the "Beating the Retreat" ceremony in New Delhi January 27, 2015. REUTERS/Ahmad Masood

"Beating The Retreat" Rehearsals

Rehearsals are on for "Beating the Retreat" ceremony which symbolises retreat after a day on the battlefield, and marks the official end of the Republic Day celebrations.  Slideshow 

MUMBAI (Reuters) - The BSE Sensex and the Nifty rose to record highs on Thursday after cabinet approval for a higher foreign direct investment limit in insurance and a rejig in foreign debt limits reinforced optimism about the government's reform agenda.

The Sensex rose to a life high of 26,292.66, surpassing its previous record high of 26,190.44 hit on July 8, while the Nifty hit a new peak for a second straight session at 7,835.65.

Gains were also underpinned by higher emerging equities which hovered near 17-month highs after a private survey showed surprisingly strong Chinese manufacturing data, boosting blue-chips such as HDFC Bank (HDBK.NS).

The Nifty rose 5.1 percent in the last eight consecutive sessions of gains compared to a 2 percent rise in the MSCI Asia Pacific Ex Japan index in the same period.

Overseas investors bought Indian shares worth 6.52 billion rupees ($108.81 million) on Wednesday, totalling inflows of $723.80 million over six consecutive days of buying, and nearly $12 billion in 2014 so far, exchange and regulatory data showed.

"Foreign investor interest is already high and the government is doing a lot of reforms to revive the economy. Monsoon progress and RBI (Reserve Bank of India) review in August are next on radar," said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance.

The Sensex rose 0.48 percent, or 124.52 points, to end at 26,271.85, while the Nifty gained 0.45 percent, or 34.85 points, to end at 7,830.60.

Insurers gained after the cabinet approved raising the foreign direct investment (FDI) limit in the insurance sector to 49 percent from 26 percent. The hike now needs to be approved by parliament.

Reliance Capital Ltd (RLCP.NS) gained 4.1 percent, while Max India Ltd (MAXI.NS) ended up 0.7 percent.

Expectations of reforms were reinforced after India on Wednesday allowed foreign fund managers to hold more government bonds by tweaking the amount that foreign institutional investors can buy while keeping the overall limit in debt markets intact.

Blue-chips rose tracking higher Asian shares. HDFC Bank rose 0.7 percent, while ITC (ITC.NS) ended higher 0.8 percent.

Indian metal companies surged after a surprisingly strong reading on Chinese manufacturing.

Tata Steel Ltd (TISC.NS) rose 2.4 percent and JSW Steel Ltd (JSTL.NS) ended higher 3 percent.

Hindalco Industries (HALC.NS) rose 2.2 percent, while National Aluminium Co Ltd (NALU.NS) advanced 2.4 percent.

Bank of Baroda (BOB.NS) rose 3.4 percent, adding to Wednesday's 2.6 percent gain after the Reserve Bank of India removed the stock from its caution list, making it eligible to be bought by foreign investors in the primary and secondary markets.

However, Ipca Laboratories Ltd (IPCA.NS) slumped 13.3 percent after the company said it has voluntarily halted shipments to the United States from one of its drug ingredient manufacturing plants after the U.S. Food and Drug Administration.

Cairn India (CAIL.NS) shares slumped 6.7 percent on the company's $1.25 billion loan facility to parent group Vedanta Group, of which $800 million was disbursed in the first quarter, Jefferies said in a note.

(Editing by Subhranshu Sahu)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Vodafone Ruling

Vodafone Ruling

Government will not appeal Vodafone tax ruling   Full Article 

Indian Railways

Indian Railways

Private refiners compete with state firm to sell diesel to railways   Full Article 

Ranbaxy Results

Ranbaxy Results

Dec-quarter net loss widens on forex loss  Full Article 

Market Eye

Market Eye

Sensex, Nifty retreat from record highs on profit-taking.  Full Article 

Tech Talk

Tech Talk

Apple takes high road in China smartphone standoff with Xiaomi.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

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