Defensives send stocks to 18-month high

Drugmakers and consumer companies advanced, outweighing declines in software makers, as investors sought safety of defensive shares amid a rally that lifted benchmark index to an 18-month high. Sun Pharmaceutical Industries climbed the most since May 27, while Aurobindo Pharma and Lupin rose at least 2.5 per cent each. A gauge of health-care stocks increased to its highest level this year. Hindustan Unilever rallied to the highest since March 2015, and Maruti Suzuki India climbed to a record.

The benchmark BSE Sensex, after a slightly better start on Thursday, quickly slipped into negative zone and touched a low of 28,854.56 on profit-booking in select stocks. It staged a comeback on buying, to hit a high of 29,077 before settling 119 points or 0.41 per cent higher at 29,045, its highest close since April 13 last year.

Nifty ended up by 34.55 points to finish at 8,952.5, after shuttling between 8,896 and 8,960.

India’s benchmark indexes are trading near their record highs after rebounding 27 percent from a low in February. The rally has pushed up the Sensex’s valuation to the highest level since January 2011.