* BSE index gains 0.72 pct; NSE index up 0.94 pct
* Both indexes hit record closing highs
* Fertiliser, infrastructure stocks rally
By Indulal PM
MUMBAI, June 9 Indian shares surged on Monday to
record highs as blue chips such as Coal India and
Larsen & Toubro continued to rally on hopes of
wide-ranging reforms by the new Narendra Modi government.
Foreign institutional investors bought a net 12.83 billion
rupees ($217.1 million) worth of shares on Friday, a sixth
consecutive session of buying that brought their total so far
this year to $8.5 billion, according to exchange and regulatory
Expectations of reforms and optimism about a recovery in the
domestic economy have sent domestic shares up 21.4 percent so
far this year, outperforming a 5 percent gain in the broader
MSCI Asia-Pacific index excluding Japan.
"It's a strong bull run what we are seeing now. Union budget
would be the next key event, but that would not be more than a
financial statement," said Jagannadham Thunuguntla, chief
strategist at SMC Global Securities.
"What the market is expecting is a key decision making
process and early signs show that the (government's) direction
is right. Unless something dramatic happens, the market is set
for further upmove," said Thunuguntla.
The benchmark BSE index rose as much as 0.98
percent to hit a record high of 25,644.77, surpassing the
highest level posted on Friday. The index closed 0.72 percent
higher at 25,580.21.
The broader NSE index gained as much as 1.2 percent
to hit an all-time high of 7,673.70. The index closed up 0.94
percent at 7,654.60.
Shares in Larsen & Toubro (L&T) closed 3.6 percent higher,
gaining for the sixth straight session as investors hope that
the new government's reform agenda would mainly focus on
infrastructure sector, where L&T is a major player.
The stock has gained 63.7 percent so far this year.
Shares in Bajaj Auto Ltd jumped 5.5 percent, the
highest single-day rise since Aug. 30, 2013, while Coal India
Ltd gained 5.8 percent to 413.20 rupees.
Fertilizer stocks rallied after government official told
Reuters that India plans to raise the price of urea, the
fertiliser most used by its farmers, by at least 10 percent.
Shares in Rashtriya Chemicals and Fertilizers Ltd
gained 5.5 percent, while Chambal Fertilisers and Chemicals Ltd
rose 9.4 percent.
Among other gainers, real estate stocks rose, with realty
index of the BSE closing 6.01 percent higher. Shares
in DLF Ltd ended 3.5 percent higher, while Unitech Ltd
gained 17.03 percent.
Oil and Natural Gas Corp was among the laggards,
losing 2.7 percent as investors preferred to take profit after
the stock jumped 12.1 percent to hit an all-time high.
Shares in Infosys continued to be under pressure. The stock
closed 0.6 percent adding to its 1.3 percent fall on Friday on
concerns after some key resignations.
For additional stocks on the move double click
FACTORS TO WATCH
* Euro nudges higher, shaking off post-ECB easing impact
* Oil rises above $109 on strong global growth
* World stocks inch towards all-time high
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
For top Asian company news, double click on:
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Forex news Global Economy news
Technology news Telecoms news
Media news Banking news
Politics/General Asia Macro data
(Editing by Anand Basu)