Indian shares ended at a record closing high on Friday as foreign investors continued to pile into domestically oriented bluechips such as Asian Paints Ltd amid a slide in crude oil prices and data showing easing wholesale inflation. Overseas investors bought shares worth 6.90 billion rupees ($112 million) on Thursday, bringing their total purchase in stocks to $15.12 billion so far in 2014. They have also pumped in $23.15 billion in debt so far, regulatory data showed.
Hopes for easing inflation are also helping spur share gains. Data on Friday showed the wholesale price index rose an annual 1.77 percent last month, its slowest since September 2009, while data on Wednesday showed consumer prices rose at the slowest rate on record. -- Foreign investors pump over $15bn in stocks this year India will also benefit from Brent sliding below $77 per barrel to its four-year low, as it imports more than two-thirds of its fuel requirements.
"Flows are positive on all counts as India stands out on growth prospects versus other emerging markets. The rally should extend," said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance. The benchmark BSE index closed 0.38 percent higher, marking its all-time closing high of 28,046.66. The broader NSE index also gained 0.38 percent to end at a record closing high of 8,389.90. Domestic oriented stocks led the gains. Asian Paints rose 4.3 percent, while Oil and Natural Gas Corp ended 1.9 percent higher. Coal India rose 2.7 percent, while GAIL (India) rose 2.8 percent.
State Bank of India ended 2.5 percent higher after earlier marking its highest level since May 26, on better-than-expected asset quality due to lower slippages and restructuring in the July-September quarter. Shares in its associate units also surged after the lender said it was close to coming up with a roadmap on associate bank mergers. State Bank of Travancore surged 6.6 percent, State Bank of Bikaner and Jaipur jumped 2.7 percent, while State Bank of Mysore soared 5.6 percent. SBI's results also improved sentiment towards other state-run banks. Bank of Baroda rose 1.5 percent, while Punjab National Bank ended up 0.4 percent. Among decliners, Sun Pharmaceutical Industries fell 2.4 percent and Cipla lost 2.3 percent after their July-September earnings disappointed investors.
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