Indian shares closed at a second straight record high on Wednesday after the finance minister assured investors that the soaring stock market reflected strong economic fundamentals, dealers said.
The Mumbai stock exchange's 30-share Sensex rose 80.51 points or 0.04 percent at 8,606.03, beating the previous high of 8,525.52 set on Tuesday.
Turnover was average at 36.89 billion rupees (842 million dollars) as 909 stocks advanced, while 1,644 declined.
"The rally continued again today in select stocks as investors remained cautious but assured after finance minister's statement," a dealer with a foreign brokerage said.
Finance Minister P. Chidambaram said late Tuesday that there were no price manipulations in the market and the government had not initiated a probe into rising prices as reported by newspapers last week.
"I am satisfied there is no manipulation that has come to our notice," Chidambaram said. "The government is not doing anything unusual or instituting a widespread probe."
Last week, the Sensex had plunged 3.1 percent following news reports that officials were worried about its rapid gains.
Chidamabaram said the bull run reflected "current fundamentals" of the economy, which the government forecasts will grow seven percent in the financial year ending March 2006.
The Sensex's gains have been driven by foreign investment of more than eight billion dollars since the start of the year and analysts have predicted that the company quarterly earning season, which starts in the first week of October, will be solid.
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