Markets at record high on optimism ahead of Budget

The Nifty hit a record high on Friday as blue chips such as Reliance Industries rose on optimism that Prime Minister Narendra Modi will deliver a fiscally prudent budget next week. Investors are betting that Modi and Finance Minister Arun Jaitley will unveil next week a credible budget that seeks to raise revenue, including from sales of state-run firms, while keeping spending under control.

Foreign institutional investors, which have been the backbone of the 23 per cent gain in the broader Nifty so far this year, bought Indian shares worth Rs 951 crore ($159.27 million) on Thursday, exchange and regulatory data showed.

The benchmark BSE Sensex closed 0.54 per cent higher at record 25,962.06. It gained 3.4 per cent this week after falling in the previous three weeks.

The broader Nifty ended 0.48 per cent higher at record 7,751.60, gaining 3.2 per cent this week. Blue-chips were among the leading gainers. Reliance Industries Ltd ended 2.5 per cent higher, marking its biggest single-day gain since June 6.