By Jessica Kuruthukulangara
The BSE Sensex <.BSESN> hit a record high on Thursday as steps taken by the capital markets regulator to attract more investments and tackle massive bad loans of banks boosted sentiment.
The Securities and Exchange Board of India (SEBI) proposed on Wednesday to ease some rules for foreign portfolio investors to steer more funds. It also relaxed open offer rules for investors buying distressed companies from banks to tackle mounting debt.
The broader NSE Nifty was up 0.65 percent at 9,696.35 as of 0606 GMT, while the benchmark Sensex was 0.76 percent higher at 31,519.97, after hitting a record high of 31,522.87 earlier.
On Wednesday, minutes from the Reserve Bank of India's monetary policy committee revealed a less hawkish tone as it welcomed data showing inflation easing below target, but wanted more assurance the trend would continue before deciding whether to lower interest rates.
"There's a possibility of a rate cut, not now, but in some time. Rate-sensitive stocks, which include banks and auto, will benefit from the rate cut," said Vinod Nair, head of research at Geojit Financial Services.
Banking stocks boosted both indexes, with the Nifty Bank index gaining as much as 0.8 percent to hit a record high.
Shares of Yes Bank Ltd
IDFC Bank
Auto stocks also climbed, with the Nifty Auto index up much as 0.9 percent, its biggest intraday percentage gain in nearly two weeks.
Shares of Maruti Suzuki India Ltd
Oil and gas companies fell, with GAIL (India) Ltd
(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Biju Dwarakanath)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
