* BSE index gains 0.53 pct; NSE index ends up 0.46 pct
* Indexes hit record highs; NSE hits life high for third
* Tech stocks gain ahead of earnings; Infosys up 3 pct
By Indulal PM
MUMBAI, July 7 India's NSE index rose on Monday
to a third consecutive record high, while the benchmark BSE
index surpassed 26,000 points, riding on gains in technology
stocks ahead of Infosys Ltd's results and hopes of a
fiscally prudent budget.
Foreign investors continued to support shares, buying a net
9.43 billion rupees ($157 million) on Friday, a sixth straight
session of purchases. Overseas investors have bought $10.54
billion worth of Indian shares so far this year, regulatory and
exchange data showed.
Investors are hoping that Prime Minister Narendra Modi and
Finance Minister Arun Jaitley will deliver a fiscally prudent
budget that increases revenue from asset sales while controlling
Still, some caution was also reflected as investors picked
up defensive shares such as Sun Pharmaceutical Industries Ltd
"There is portfolio adjustment and people are taking
positions ahead of the budget. Investors are looking at sectors,
where greater emphasis would be given by the Modi government. We
are bullish and expect more upside, but advise clients to be
cautious and selective," said Suresh Parmar, head, institutional
equities at KJMC Capital Markets.
The benchmark BSE index ended 0.53 percent higher
at 26,100.08, a record closing high. Earlier in the day, it rose
0.62 percent to an all-time high of 26,123.55.
The broader NSE index ended 0.46 percent higher at
7,787.15 after rising as much as 0.52 percent to hit a record
high of 7,792, the third session in a row.
Technology stocks led the gains, with the IT index of the
BSE closing 2.63 percent higher ahead of Infosys
kicking of the April-June earnings season on July 11. Infosys
rose 3.07 percent, while Tata Consultancy Services Ltd
gained 3.24 percent.
Infrastructure finance company IDFC Ltd rose 6.34
percent after Morgan Stanley upgraded the stock to "overweight"
from "underweight" and raised its target price to 175 rupees
from 115 rupees.
Healthcare stocks gained as investors tried to de-risk their
portfolios by adding defensive stocks. Dr Reddy's Laboratories
Ltd rose 1.94 percent, while Sun Pharmaceutical ended
1.93 percent higher.
Among other blue-chips, energy stocks gained with Tata Power
Co Ltd up 3.7 percent and Bharat Heavy Electricals Ltd
ending 0.74 percent higher on hopes that the power
sector would get better treatment in the budget.
However, gains were limited as investors trimmed positions
in banking, and oil and gas stocks. ICICI Bank closed
0.8 percent lower, while Oil and Natural Gas Corp
ended down 1.5 percent.
For additional stocks on the move double click
FACTORS TO WATCH
* Euro struggles after German data, nears 2-year low vs
* Oil slips towards $110 as supply fears fade
* Dollar creeps higher as equities prepare for earnings
* 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:
U.S. company news European company news
Forex news Global Economy news
Technology news Telecoms news
Media news Banking news
Politics/General Asia Macro data
($1 = 60.0200 Indian Rupees)
(Reporting by Indulal PM; Editing by Prateek Chatterjee)