Sensex extends record run

FE Team | Published: April 03, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

MUMBAI, Apr 2 (Reuters): The BSE Sensex touched a new high for the eighth straight session on Wednesday and non-bank financial companies such as IDFC Ltd surged after the election commission allowed the Reserve Bank of India (RBI) to announce new bank licences.
Heavy foreign buying continued to underpin the recent rally with overseas investors buying Indian shares worth 3.85 billion rupees on Tuesday after a totalling $3.3 billion in March.
Blue chips also tracked higher global shares on Wednesday as investors focused on the good news in a mixed bag of international economic data.
US jobs data due on Friday and India's general elections, beginning this month, are widely expected to drive shares in the near term.
Investors see India's main opposition Bharatiya Janata Party, perceived more business-friendly, holding higher chances of coming to power.
"Practically positions can be kept but strategically they should be shifted or pared after such a strong rally," Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance, said.
The Sensex rose as much as 0.65 per cent to an all-time high of 22,592.10, while Nifty gained 0.63 per cent to a record high of 6,763.50.
The Sensex and the Nifty ended up 0.47 per cent each.
Potential bank licence candidates led the gainers: IDFC Ltd surged 3.8 per cent and LIC Housing Finance rose 4.7 per cent.
India's election commission on Tuesday allowed the Reserve Bank of India to announce new bank licences even ahead of general elections.
The central bank had sought the commission's approval to ensure the process would not clash with the code of conduct, which prevents decisions that may be deemed as political from being taken by government officials or regulators.
Among blue chip stocks, Reliance Industries Ltd and Larsen & Toubro Ltd rose 1.7 per cent each after earlier marking their 52-week high at 962 rupees and 1,310 rupees respectively.