AIRLINK 191.00 Decreased By ▼ -5.65 (-2.87%)
BOP 10.15 Increased By ▲ 0.01 (0.1%)
CNERGY 6.75 Increased By ▲ 0.06 (0.9%)
FCCL 34.35 Increased By ▲ 1.33 (4.03%)
FFL 17.42 Increased By ▲ 0.77 (4.62%)
FLYNG 23.80 Increased By ▲ 1.35 (6.01%)
HUBC 126.30 Decreased By ▼ -0.99 (-0.78%)
HUMNL 13.80 Decreased By ▼ -0.10 (-0.72%)
KEL 4.75 Decreased By ▼ -0.01 (-0.21%)
KOSM 6.55 Increased By ▲ 0.18 (2.83%)
MLCF 43.35 Increased By ▲ 1.13 (2.68%)
OGDC 226.45 Increased By ▲ 13.42 (6.3%)
PACE 7.35 Increased By ▲ 0.34 (4.85%)
PAEL 41.96 Increased By ▲ 1.09 (2.67%)
PIAHCLA 17.24 Increased By ▲ 0.42 (2.5%)
PIBTL 8.45 Increased By ▲ 0.16 (1.93%)
POWER 9.05 Increased By ▲ 0.23 (2.61%)
PPL 194.30 Increased By ▲ 10.73 (5.85%)
PRL 37.50 Decreased By ▼ -0.77 (-2.01%)
PTC 24.05 Decreased By ▼ -0.02 (-0.08%)
SEARL 94.97 Decreased By ▼ -0.14 (-0.15%)
SILK 1.00 No Change ▼ 0.00 (0%)
SSGC 40.00 Decreased By ▼ -0.31 (-0.77%)
SYM 17.80 Decreased By ▼ -0.41 (-2.25%)
TELE 8.72 Decreased By ▼ -0.01 (-0.11%)
TPLP 12.46 Increased By ▲ 0.25 (2.05%)
TRG 62.74 Decreased By ▼ -1.62 (-2.52%)
WAVESAPP 10.35 Decreased By ▼ -0.09 (-0.86%)
WTL 1.73 Decreased By ▼ -0.06 (-3.35%)
YOUW 4.02 Increased By ▲ 0.02 (0.5%)
BR100 11,814 Increased By 90.4 (0.77%)
BR30 36,234 Increased By 874.6 (2.47%)
KSE100 113,247 Increased By 609 (0.54%)
KSE30 35,712 Increased By 253.6 (0.72%)

Indian shares hit a record closing high on Monday as investors continued to switch to stocks with a domestic focus, such as NTPC, on hopes the new government to be led by Narendra Modi would spur major economic reforms. However, broader gains were capped as exporters lost heavily after the rupee strengthened to an eleven-month high against the dollar, sending IT outsources and drug makers sharply lower.
The victory of the Bharatiya Janata Party and its prime minister candidate, Narendra Modi, has spurred optimism the new government would kick-start an economy growing at its slowest in a decade and led a slew of banks including Goldman Sachs and Citigroup to sharply raise their forecasts for the BSE and NSE indexes. Foreign investors have remained strong buyers in the rally. On Friday, the day of the election results, they bought shares worth a net 36.34 billion rupees ($615.6 million), their biggest single-day purchase since March 21, provisional exchange data showed.
"A stable and decisive government can re-engineer the Indian growth story by spear-heading structural reforms going ahead, and thus increasing foreign investors' interest in India," said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance.
The benchmark BSE index rose 1 percent, or 241.31 points, to end at 24,363.05, a record closing high but still well below the all-time high of 25,375.63 hit on Friday. The broader NSE index rose 0.84 percent, or 60.55 points, to end at 7,263.55, also a record closing high, after hitting an all-time high of 7,563.50 in the previous session. Domestic-focused shares continued to lead the rally. NTPC surged 10.6 percent, while Oil and Natural Gas Corp ended 8.5 percent higher. Tata Power Co Ltd rose 7.5 percent while Larsen & Toubro Ltd gained 6.8 percent.
The NSE sub-index for lenders rose 2.5 percent to a record closing high. Punjab National Bank surged 10.5 percent while State Bank of India jumped 6.2 percent. Also, NSE midcap index ended 4.4 percent higher after earlier rising to a record high, helped by a 16.8 percent surge in Reliance Infrastructure and a 14.3 percent jump in Power Finance Corp. However, exporters, who had led a rally late last year and early this year, slumped after the rupee hit its strongest in eleven months against the dollar.
Tata Consultancy Services slumped 5.7 percent, and HCL Technologies lost 4.2 percent, Infosys ended down 5.1 percent, while Wipro fell 4.1 percent. IT stocks also slumped amid heavy selling by domestic mutual funds, three institutional dealers told Reuters, although they said the state-run Life Insurance Corp (LIC) had stepped in to buy to prevent even bigger falls. LIC did not respond to email or phone queries. Dr Reddy's Laboratories fell 5 percent while Lupin lost 4.6 percent.

Copyright Reuters, 2014

Comments

Comments are closed.