Sensex hits record high above 25,400; ONGC jumps
Seven hundred and fifty nine shares hit their 52-week highs on Friday and the BSE Sensex and Nifty scaled new peaks as the arrival of the southwest monsoon, hopes of a gas price increase and global cues led to frenzied buying.business Updated: Jun 07, 2014 00:00 IST
The BSE Sensex and Nifty surged to a record high on Friday as blue-chips including oil and gas companies rose on continued optimism about policy reforms by the new government.
People walk past the Bombay Stock Exchange (BSE) building in Mumbai. (Reuters Photo)
Upstream oil and gas companies led the rally on expectation that the new business-friendly government of Prime Minister Narendra Modi would usher in substantial reforms.
Local shares were also underpinned by foreign fund inflows into equity markets for the fifth straight session on Thursday. Overseas investors bought shares worth 13.69 billion rupees on Thursday, provisional exchange data showed, taking their total purchases to $8.3 billion so far this year.
"The market is in a bull run and the momentum is expected to continue. Large overseas funds, which are coming into the market, are looking for quality companies with inherent strength such as ONGC. Most of the state-run companies are performing and are getting rerated. There could be intermediate corrections, which are good for the markets," said Deven Choksey, managing director, KR Choksey Securities.
The Sensex gained as much as 1.6% to hit an all-time high of 25,419.14. The index closed 1.51% higher at 25,396.46, posting a 4.9% gain for the week.
The broader Nifty surged as much as 1.59% to a record high of 7,592.70. The index closed 1.46% higher at 7,583.40, marking a 4.9% rise for the week.
Shares of Oil and Natural Gas Corp gained as much as 12.1% to an all-time high of 469.85 rupees. The stock closed 11.1% higher at 465.65 rupees, adding to the 1.9% gain on Thursday, amid continued hopes about reforms in the sector.
Shares in other oil and gas companies also gained with the BSE's oil and gas index closing 4.82% higher.
Reliance Industries Ltd RELI.NS advanced 2.98%, adding to its 1.2% gain on Thursday. Oil India Ltd rose 3.92%, while Gail India Ltd gained 7.94%.
Bluechips such as Housing Development Finance Corp rose 2.9% while Hero MotoCorp Ltd gained 3.9%.
State Bank of India closed 1.6% higher, while Mahindra and Mahindra Ltd ended up 2.5%.
Shares in other banks also gained. Kotak Mahindra Bank Ltd ended 3.9% higher, while Punjab National Bank closed up 2.7%.
Shares in sugar companies gained after the union food minister said India would examine raising import tax on the sweetener to support local prices and help mills clear dues to cane growers.
Shares in Shree Renuka Sugars Ltd gained 13.3%, while Balrampur Chini Mills Ltd closed 7.5% higher.
However, technology stocks declined with Infosys Ltd falling 1.3% after one of its top executive resigned. Tata Consultancy Services Ltd closed 0.95% lower.