MUMBAI: Benchmark indices rose for the third consecutive day to hit fresh one-year highs on Wednesday, aided by a rally in banks, auto and infrastructure companies. Private sector lender RBL Bank made a stellar debut , with the stock closing 33% higher against its issue price.
The Sensex closed at 28,452.17, up 109 points, or 0.4%, and the NSE Nifty ended at 8,786.20, a gain of 42 points, or 0.5%.
Foreign funds have continued to invest in India’s equity market, and bought shares worth ₹58 crore on Wednesday, according to NSDL data. Analysts said an improving economy and expected pick-up in corporate earnings will drive investors to India, amid easy monetary policies in many parts of the world.
“We are in a low-returns world. A large part of the global bond market is trading negatively. So the advantage for India is obvious. India’s economic parametres are well in favour of growth,” said Tushar Pradhan, chief investment officer, HSBC Global Asset Management.
RBL Bank shares listed at ₹273.70 on the BSE, up almost 22% against its issue price of ₹225 a share. It hit a high of ₹305, before closing at ₹299.30, up 33%.