Tuesday, 25 March 2014 00:00
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Reuters: The BSE Sensex and Nifty jumped nearly 1.5% on Monday to record highs, surpassing their previous all-time highs hit just last week as lenders including ICICI Bank extended a recent rally boosted by strong foreign investor flows.
The Nifty ended 1.36% higher after marking a lifetime high of 6,591.50, while the benchmark Sensex finished 1.38% up after touching a record high of 22,074.34, surpassing their previous milestones hit on March 18.
Banks led the gains on optimism about a recovery in the domestic economy tipped to be growing at its lowest pace in a decade, and bets the Reserve Bank of India would keep interest rates on hold for now at its policy review on April 1.
The prospect that the general elections due to conclude by May will usher in a new government led by the opposition Bharatiya Janata Party is also aiding the gains, given market perceptions that the party has a more business-friendly stance. Foreign investors have been particularly heavy buyers during the rally, with net purchases of $1.6 billion of shares so far this month, regulatory data showed.
