Indian shares closed sharply higher on Thursday at a new record close as overseas funds bought stocks across the board, dealers said. Dealers said the surge in overseas fund-buying became a strong signal for domestic investors to buy shares as well.
The 30-share Mumbai stock exchange Sensex index rose 94.28 points or 1.15 percent to close at 8,283.76, beating the previous record close of 8,193.96 set Tuesday which capped seven straight trading days of record levels.
Turnover was strong at 38.30 billion rupees (874 million dollars), as 1,905 stocks gained and 704 declined.
The market has gained more than 25 percent this year led by overseas funds as net buyers of 8.05 billion dollars in Indian shares since the start of the year, compared to 4.48 billion dollars in the same period last year. Foreign funds bought Indian shares worth 95.9 million dollars Wednesday.
"Much of the market outlook is led by the foreign fund flows. Overseas fund buying is sustained and this has pushed domestic institutions to buy selectively," said Atul Hatwar of brokerage Crosseas Securities.
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