Markets' record-hitting spree continues

The country's benchmark indices continued to clock record highs on the back of robust foreign inflows, stronger rupee and expectations of improvement in the economic growth.

The 30-share Sensex on Wednesday closed up 105.05 points, or 0.47 per cent, at 22,551.49. The NSE Nifty index rose for a tenth straight session - its longest gaining streak in over six years - to end at 6,752.55, up 31.50 points, or 0.47 per cent.

State-owned lenders led the charge on Wednesday. Foreign institutional investors (FIIs) bought shares worth of about Rs 600 crore, provisional data on stock exchanges showed.

"Buying interest is being seen in the banking, realty and capital goods stocks... The FIIs being buyers on the hope of a stable government is the other trigger for the markets. As the markets are in the overbought zone higher level profit booking can be expected," said Alex Mathews, head research, Geojit BNP Paribas Financial Services.

Bank of Baroda, IDFC and Punjab National Bank were the biggest gainers on the Nifty. Tata Motors and Larsen and Toubro also added over two per cent each.

"We continue to remain bullish on markets. Although the quantum of purchase has gone down, FIIs continue to invest. Small correction of maybe 100 points on the Nifty cannot be ruled out. But it won't matter much as the index has rallied around 700 points from its lows," Siddharth Bhamre, head of derivative analysis at Angel Broking.

Most emerging markets, too, have performed well in the last fortnight but India has remained a stand out performer this year. The Nifty has gained seven per cent so far in 2014 and is up over 12 per cent from its February lows.