MUMBAI: India’s benchmark stock index raced to a record high yesterday as foreign investors bought shares on hopes that a new pro-business government would emerge from elections which start next month.
The Bombay Stock Exchange’s (BSE) benchmark index gained 1.06 percent to touch a lifetime high of 22,040.72 points in morning trading, before closing at 21,832.61 points, 0.10 percent higher than Monday’s closing.
The momentum in markets could last until April with election results in May providing the next set of cues, analysts said.
Growth slackened last year to a decade low of 4.5 percent and the government expects 4.9-percent expansion in this fiscal year to March 31. The results of the general election, to be held in phases, are due in mid-May.
Foreign institutional investors have purchased $7.4bn in local equities and debt so far in the fourth quarter of the current fiscal year, data from the Securities and Exchange Board of India showed. Maruti Suzuki rose 7.58 percent to Rs1,868.85 per share while Financial Technologies gained 4.99 percent to Rs378.95 per share.AFP
