By Abhishek Vishnoi
MUMBAI (Reuters) - The benchmark BSE Sensex and the broader Nifty rose to record highs on Thursday after cabinet approval for a higher foreign direct investment limit in insurance and a rejig in foreign debt limits reinforced optimism about the government's reform agenda.
The Sensex rose to a life high of 26,292.66, surpassing its previous record high of 26,190.44 hit on July 8, while the Nifty hit a new peak for a second straight session at 7,835.65.Indian shares hit record high on FDI hi
Gains were also underpinned by higher emerging equities which hovered near 17-month highs after a private survey showed surprisingly strong Chinese manufacturing data, boosting blue-chips such as HDFC Bank
The Nifty rose 5.1 percent in the last eight consecutive sessions of gains compared to a 2 percent rise in the MSCI Asia Pacific Ex Japan index in the same period.
Also Read
Overseas investors bought Indian shares worth 6.52 billion rupees ($108.81 million) on Wednesday, totalling inflows of $723.80 million over six consecutive days of buying, and nearly $12 billion in 2014 so far, exchange and regulatory data showed.
"Foreign investor interest is already high and the government is doing a lot of reforms to revive the economy. Monsoon progress and RBI (Reserve Bank of India) review in August are next on radar," said Nirakar Pradhan, chief investment officer at Future Generali India Life Insurance.
The Sensex rose 0.48 percent, or 124.52 points, to end at 26,271.85, while the Nifty gained 0.45 percent, or 34.85 points, to end at 7,830.60.
Insurers gained after the cabinet approved raising the foreign direct investment (FDI) limit in the insurance sector to 49 percent from 26 percent. The hike now needs to be approved by parliament.
Reliance Capital Ltd
Expectations of reforms were reinforced after India on Wednesday allowed foreign fund managers to hold more government bonds by tweaking the amount that foreign institutional investors can buy while keeping the overall limit in debt markets intact.
Blue-chips rose tracking higher Asian shares. HDFC Bank rose 0.7 percent, while ITC
Indian metal companies surged after a surprisingly strong reading on Chinese manufacturing.
Tata Steel Ltd
Hindalco Industries
Bank of Baroda
However, Ipca Laboratories Ltd
Cairn India
(Editing by Subhranshu Sahu)