Indian shares surge to record closing high; resources stocks gain
* Benchmark BSE index gains 0.86 pct to record close
* NSE index up 0.97 pct to close at record high
* Metals, energy stocks gain
By Indulal PM
MUMBAI, June 5 (Reuters) - 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 percent higher at 25,019.51, a record closing high, surpassing Tuesday's Close of 24,858.59.
The broader NSE index ended 0.97 percent 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 percent, gaining 17.23 percent so far this week and Hindalco Industries Ltd closed up 5.7 percent, gaining 14.8 percent this week. Sesa Sterlite shares rose 6.5 percent.
State-run oil marketing companies such as Hindustan Petroleum Corp Ltd gained 5.3 percent, Bharat Petroleum Corp Ltd closed up 7.6 percent and Indian Oil Corp. ended 4.3 percent higher on optimism about diesel price deregulation.
Among oil and gas firms, Reliance Industries Ltd gained 1.2 percent while Oil India Ltd rose 2.02 percent. Oil and Natural Gas Corp. closed 1.98 percent higher.
Shares of Indian tyre makers rose 2 to 4 percent as prices of natural rubber fell to their lowest in 4-1/2 years in the global market.
Apollo Tyres Ltd gained 3.4 percent and Ceat Ltd closed 4.6 percent higher.
Technology stocks gained on value buying. Infosys Ltd closed 1.9 percent higher while Wipro Ltd gained 1.8 percent.
Pharmaceutical companies' stocks were among those that fell. Dr Reddy's Laboratories ended 0.4 percent lower while Cipla Ltd closed down 0.9 percent.
HDFC Bank Ltd closed 1.4 percent lower on profit-taking.
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FACTORS TO WATCH * Euro hovers near 4-month lows as ECB looms * Oil falls to 3-week low under $108 on hopes for Ukraine talks * Europe stocks hold steady, euro hostage to ECB decision * Foreign institutional investor flows * For closing rates of Indian ADRs
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Politics/General Asia Macro data <ECONASIA (Reporting by Indulal PM; Editing by Anupama Dwivedi)