Indian shares surge to record high

MUMBAI, June 6 (Reuters): Indian shares 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.

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 ($230.8 million) 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.