The BSE Sensex and Nifty hit a record high for a fifth consecutive session on Tuesday after a deal that could open the door for US companies to build nuclear reactors in the country boosted firms expected to benefit such as Larsen & Toubro.
The 50-share Nifty for the first time was trading above the crucial psychological level of 8,900 and the S&P BSE Sensex was trading above its all-time high of 29,500.
Overseas investors also continued their buying spree. Foreign institutions, which have bought Indian shares worth $977.3 million so far this year, purchased Rs 2002 crore ($328.75 million) on Friday, provisional exchange data showed.
But broader gains were capped as drug makers fell ahead of earnings results and after Ranbaxy Laboratories lost rights to launch a generic version of AstraZeneca Plc’s blockbuster heartburn drug Nexium to Teva Pharmaceutical Industries, raising fears about increased competition from abroad.
“Markets are in a cautious mood now. Individual stocks will continue to perform well. I think select infrastructure companies will participate in the rally,” said Deven Choksey, managing director, KR Choksey Securities.
At 3:05 PM, the benchmark BSE Sensex was up 1 per cent or 291 points at 29,570. The 50-share Nifty was at 8,912, up 77 points.
Capital goods stocks rose after U.S. President Barack Obama and Indian Prime MinisterNarendra Modi unveiled a deal aimed at unlocking billions of dollars in nuclear trade and deepening defence ties.
Alstom India gained 5.4 per cent, Bharat Heavy Electricals Ltd rose 1.2 per cent and Larsen & Toubro added 1.8 per cent. Ranbaxy Laboratories fell 1.3 per cent.