March 7, 2014 / 10:08 AM / 4 years ago

Sensex, NIfty's record highs signal bet on Indian economy

A broker reacts while trading at a stock brokerage in Mumbai February 26, 2010. REUTERS/Arko Datta/Files

Reuters Market Eye - Capital goods, banks and mid-caps are driving the Sensex and NIfty to record highs this week, unlike in December when drug makers and software services exporters led the gainers. (link.reuters.com/bas47v)

Analysts attribute the gains to expectations of a rebound in economic growth and more stable inflation.

The outperformance comes amid signs that foreign investors are increasing their holdings in these sectors.

For example, overseas holdings in shares of capital goods companies since mid-September had risen by 37.4 percent to $12.78 billion as of February 28, regulatory data shows, while overseas holdings in banks rose by 10.9 percent.

Overseas investors bought Indian shares worth 12.73 billion rupees on Thursday, their biggest daily purchase since December 19, extending their buying streak to a 15th straight day, totalling more than $1 billion.

Reporting by Abhishek Vishnoi

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