Indian shares surge to record closing high; resources stocks gain

Indian shares surge to record closing high; resources stocks gain

MUMBAI - Indian shares ended at a fresh closing high on Thursday, helped by gains in resources stocks such as Sesa Sterlite on continued optimism over the revival of the domestic economy.

Metal stocks continued to gain, surging for the third straight day on the back of positive China factory surveys earlier this week.

The sentiment was further underpinned as overseas investors bought Indian shares worth $32.25 million on Wednesday, in a third straight session of buying.

"There are no visible near-term negatives. Investors are building portfolios ahead of the union budget, which would be the next big event. FIIs (foreign institutional investors)continue to support. The undercurrent is still positive," said Suresh Parmar, head of institutional equities at KJMC Capital Markets.

The benchmark BSE index ended 0.86 per cent higher at 25,019.51, a record closing high, surpassing Tuesday's Close of 24,858.59.

The broader NSE index ended 0.97 per cent higher at 7,474.10, a fresh record closing high. NSE on Tuesday closed at 7,415.85.

Among metal stocks, Tata Steel Ltd rose 3.6 per cent, gaining 17.23 per cent so far this week and Hindalco Industries Ltd closed up 5.7 per cent, gaining 14.8 per cent this week. Sesa Sterlite shares rose 6.5 per cent.

State-run oil marketing companies such as Hindustan Petroleum Corp Ltd gained 5.3 per cent, Bharat Petroleum Corp Ltd closed up 7.6 per cent and Indian Oil Corp. ended 4.3 per cent higher on optimism about diesel price deregulation.

Among oil and gas firms, Reliance Industries Ltd gained 1.2 per cent while Oil India Ltd rose 2.02 per cent. Oil and Natural Gas Corp. closed 1.98 per cent higher.

Shares of Indian tyre makers rose 2 to 4 per cent as prices of natural rubber fell to their lowest in 4-1/2 years in the global market.

Apollo Tyres Ltd gained 3.4 per cent and Ceat Ltd closed 4.6 per cent higher.

Technology stocks gained on value buying. Infosys Ltd closed 1.9 per cent higher while Wipro Ltd gained 1.8 per cent.

Pharmaceutical companies' stocks were among those that fell. Dr Reddy's Laboratories ended 0.4 per cent lower while Cipla Ltd closed down 0.9 per cent.

HDFC Bank Ltd closed 1.4 per cent lower on profit-taking.

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