Sensex rises to near record highs on economic data

Reuters Market Eye - The BSE Sensex gains 0.34 percent, while the Nifty is trading up 0.44 percent, both within the reach of record highs hit earlier in the week.

Blue chips rally after data on Wednesday showed consumer inflation in February eased more than expected to a 25-month low, while industrial output in January expanded slightly, its first growth in four months.

The data is seen cementing expectations for the RBI to keep interest rates on hold at its policy review on April 1.

Foreign investors continue to back the rally, with net purchases of $250 million on Wednesday, 18th buying session over the previous 19.

Banks are among the leading gainers, with State Bank of India gaining 2.61 percent.

Other blue chips also gain, with Reliance Industries up 2.1 percent.

However, Infosys slumps 7.8 percent after chairman Narayan Murthy said revenue for the fiscal year ending in March could grow at the lower end of its 11.5-12 percent guidance.

Sun Pharmaceutical Industrials also fell 4.06 percent after the U.S. Food and Drug Administration (FDA) imposed a ban on imports from its Karkhadi plant in Gujarat.

(Reporting by Indulal P)