Indian share prices rose 1.32 percent to a third straight record close on Friday on sustained overseas fund buying in benchmark stocks, dealers said. They said sentiment improved as India's inflation fell to a near five year low of 3.32 percent for the week ended September 8, even as the rupee continued to rise against the weak dollar at 39.87 from 39.91.
The Mumbai stock exchange Sensex index rose 216.28 points to 16,564.23, from a previous record close of 16,347.95. The Sensex hit a new intraday high of 16,616.84 from a previous high of 16,415.88 on Thursday. Property and oil stocks rose. "The market remains cautiously optimistic while oil prices continue to rise. We could see some correction next week due to profit booking," said a dealer with brokerage Jamnadas Morarjee.