Sensex, Nifty hit record highs on budget hopes - Livemint

Since the beginning of this year, the Sensex has gained 23.06%, while foreign institutional investors have bought $10.49 billion from local equity markets. Photo: Hemant Mishra/Mint

Mumbai: The Nifty rose on Monday to a third consecutive record high, while the Sensex 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 Rs943 crore ($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 spending.

“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 Sensex ended 0.53% higher at 26,100.08, a record closing high. Earlier in the day, it rose 0.62% to an all-time high of 26,123.55.

The Nifty ended 0.46% higher at 7,787.15 after rising as much as 0.52% to hit a record high of 7,792, the third session in a row.

Technology stocks led the gains, with the BSE IT index closing 2.63% higher ahead of Infosys kicking of the April-June earnings season on 11 July. Infosys rose 3.07%, while Tata Consultancy Services Ltd. (TCS) gained 3.24%.

Infrastructure finance company IDFC Ltd. rose 6.34% after Morgan Stanley upgraded the stock to “overweight” from “underweight” and raised its target price to Rs175 from Rs115.

Healthcare stocks gained as investors tried to de-risk their portfolios by adding defensive stocks. Dr Reddy’s Laboratories Ltd. rose 1.94%, while Sun Pharmaceutical ended 1.93% higher.

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