Indian share prices closed at a record high Tuesday as investors welcomed proposals to boost the economy in the budget for the next fiscal year starting April 1, dealers said.
They said automobile, banking and consumer stocks posted the strongest gains after moves to bolster those sectors were announced.
The benchmark Mumbai Stock Exchange Sensex index rose 88.15 points or 0.86 percent to a second-straight record high of 10,370.24. Losers led gainers 1,370 to 1,113 on higher volumes of 43.17 billion rupees (972 million dollars).
The market also welcomed the government's forecast that the fiscal deficit would fall to 3.8 percent of GDP in the next fiscal year from 4.1 percent this year.
"For overseas funds, the India story is intact. They welcomed the macroeconomic numbers and fiscal prudence. Retail investors, waiting for a clear market reaction, came in later," said Rajesh Jain, director of Pranav Securities. But he said he expected the market to lose ground in coming weeks. "I do not expect this trend to continue. We should see profit-booking as the fiscal year draws to a close," Jain said.
India's largest car maker, Maruti Udyog, rose 33.85 rupees or 4.29 percent to 822.6 rupees.
Anglo-Dutch food giant Unilever's Indian arm Hindustan Lever rose 3.55 rupees or 1.49 percent to 241.95 rupees on duty cuts on ice creams and sodas.
Engineering multinational Larsen and Toubro rose 34.15 rupees or 1.45 percent to 2,397 rupees on overseas fund buying.