BENGALURU, Aug 4 (Reuters) - Indian shares hit record highs
on Wednesday, led by financial and metals sectors, as the
blue-chip Nifty 50 index's break above the key psychological
16,000-level brought fresh impetus into the market and boosted
By 0504 GMT, the NSE Nifty 50 index climbed 0.92% to
16,281.35 and the benchmark S&P BSE Sensex rose 0.93%
"The momentum that has come after a clean break of
16,000-mark seems to have brought in or at least attracted fresh
buyers. We have broken a month-long excruciatingly tight range
of 400 points," said Anand James, chief market strategist at
Geojit Financial Services.
The breakout has also prompted several short-coverings and
triggered buying in banking stocks, which were major laggards in
the past few weeks, James said, adding that the rally seems to
be driven mostly by the Nifty 50 components.
The Nifty Bank index, which shed more than 3% in
the past two weeks, added 1.7% on Wednesday. The Nifty Financial
Services Index rose 2%, while the metals sub-index
gained 1.5%. HDFC Ltd was the top gainer
on the Nifty 50 index, rising 4.1%.
Analysts also said strong quarterly results were aiding
Telecom operator Bharti Airtel Ltd rose 0.3% after
reporting a 15% increase in first-quarter revenue on Tuesday,
helped by higher data usage and subscriber additions.
Adani Ports and Special Economic Zone Ltd rose as
much as 2% after reporting two-fold rise in June quarter profit.
Meanwhile, India's central bank begins its three-day policy
meeting on Wednesday, where it is expected to leave interest
rates at record lows for a seventh straight time on Friday.
Markets are keeping an eye on liquidity measures about to be
taken by the central bank.
(Reporting by Nallur Sethuraman in Bengaluru; editing by