CORRECTED - Nifty hits record high, moves closer to 10,000 mark

(Corrects analyst's designation in paragraph five to head investment strategist, from vice president)

By Samantha Kareen Nair

The NSE Nifty rose to a record high on Monday, inching closer to the 10,000 mark, as market heavyweight Reliance Industries Ltd continued to surge on optimism about its outlook for the core business and telecom venture.

The broader Nifty rose as much as 0.54 percent to 9,968.95, surpassing the previous record set a week earlier, while the benchmark BSE Sensex climbed 0.67 percent to an all-time high of 32,242.78.

Reliance was the leading gainer, advancing as much as 2.5 percent to its highest since Jan. 15, 2008, after the oil-to-telecoms conglomerate posted better-than-expected earnings and unveiled a low-cost 4G-enabled phone last week.

 

But indexes could struggle to post stronger gains in the near term as analysts warned investors would likely enter a consolidation phase as more companies report earnings, including HDFC Bank Ltd later in the day.

"The process of consolidation is likely to continue. We will see more stock-specific moves coming through depending on how corporate results unfold," said Gaurang Shah, head investment strategist at Geojit Financial Services.

Among other gainers, Lupin Ltd rose as much as 2.8 percent after the U.S. health regulator cleared inspection of the company's Goa facility with no adverse observations.

Bharti Airtel Ltd gained 1.5 percent, recovering from Friday's 2 percent decline, as analysts said the impact from the unveiling of the JioPhone would not be as bad as initially feared.

Meanwhile, strong quarterly results helped lift stocks such as Vijaya Bank and Jammu and Kashmir Bank . Vijaya Bank rose over 2.5 percent while Jammu and Kashmir Bank gained 6.5 percent.

(Reporting by Samantha Kareen Nair in Bengaluru; Editing by Subhranshu Sahu)