Indian shares at record high close

Indian share prices closed at a record high on Tuesday on sustained fund buying after the central bank surprised investors and kept interest rates stable in a quarterly review, dealers said.
They said the Reserve Bank of India had been expected to raise a key short-term rate by 25 basis points from 5.50 percent to contain inflation, but instead opted to keep rates stable to spur economic growth.
The benchmark 30-share Sensex rose 281.89 points to 11,821.57, surpassing the previous record close of 11,746.90 set on April 5.
However, investors said the market could turn cautious after central bank governor Y.V. Reddy warned that rising oil prices remain a concern for the inflation outlook.
"We do feel that the markets could face resistance from here on, with buying being stock-specific," said Naresh Garg, chief investment officer with Sahara Mutual fund, a private company.