Indian shares rose to record highs for a fourth straight session on Thursday, as state-run lenders including State Bank of India extended recent gains on broker upgrades and on hopes of some easing at the central bank's policy review on Tuesday. Higher rollovers on an absolute basis coupled with high roll cost during the expiry of March derivative contracts also lent support and indicates market participants are bullish for the April series, dealers added.
Overseas investors have helped underpin gains, with net purchases in shares reaching $2.75 billion so far this month, according to regulatory data. "Profit-booking cannot be ruled out, but it remains a buy on dips due to flows and macro improvement," said Deven Choksey, managing director at K R Choksey Securities. The NSE index rose as much as 1.1 percent to an all-time high of 6,673.95, while the benchmark BSE index gained 0.96 percent to a lifetime high of 22,307.74.
The BSE index closed 0.54 percent higher, while the NSE index ended up 0.61 percent. Shares in state-run banks gained after Goldman Sachs upgraded the stocks, saying neglected lenders are poised for a rally on emerging macroeconomic and political clarity. State Bank of India rose 3.9 percent, Punjab National Bank ended higher 3.8 percent, and Bank of Baroda gained 2.4 percent.
Non-banking state-run infrastructure lender IDFC Ltd also rose 5.2 percent. Other bluechips also rose: Reliance Industries gained 1.1 percent, while ITC ended 0.2 percent higher. Airline shares gained after the central bank on Wednesday extended the deadline for raising working capital via external commercial borrowings by domestic airlines to March 2015 from December 2013.
Jet Airways (India) Ltd, the country's No 2 airline by domestic market share, gained 2.6 percent, while SpiceJet Ltd surged 3.5 percent. Among pharmaceutical exporters, Sun Pharmaceutical Industries Ltd fell 1.1 percent and Dr Reddy's Laboratories Ltd lost 1.7 percent.
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