(Repeats to widen distribution)
* BSE index gains 0.54 pct; NSE index up 0.48 pct
* Both indexes mark record closing highs; NSE hits life high
* Reliance Industries, HDFC Bank gain
By Indulal PM
MUMBAI, July 4 (Reuters) - India's NSE index hit a
record high on Friday as bluechips 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, who have been the backbone
of the 23 percent gain in the broader NSE index so far
this year, bought Indian shares worth 9.51 billion rupees
($159.27 million) on Thursday, exchange and regulatory data
"Most investors, including FIIs, are putting new money in
the market on hopes the budget will lead the way to a revival in
the economy. Build-up of positions has already started," said
Deven Choksey, managing director at KR Choksey Securities.
"The budget may focus on revival in growth and fiscal
consolidation. We are bullish and expect the Nifty to trade
between 7,500 and 8,000 in the near term,"
The benchmark BSE index closed 0.54 percent higher
at record 25,962.06. It gained 3.4 percent this week after
falling in the previous three weeks.
The broader NSE index ended 0.48 percent higher at
record 7,751.60, gaining 3.2 percent this week.
Bluechips were among the leading gainers. Reliance
Industries Ltd ended 2.5 percent higher, marking its
biggest single-day gain since June 6.
Other gainers included HDFC Bank, which was up 2.4
percent, and NTPC Ltd which gained 0.8 percent.
Investors also hedged their risk by buying defensives such
as drug makers. Dr Reddy's Laboratories Ltd rose 1.5
percent and Sun Pharmaceutical Industries Ltd ended 0.4
Among other bluechips, Bharti Airtel Ltd gained
0.7 percent after the Reserve Bank of India increased limit for
overseas investors to buy shares in the company.
However, recent outperformers such as metal stocks were
under selling pressure. Hindalco Industries Ltd ended
0.3 percent lower, adding to its 2.52 percent fall on Thursday.
The stock still gained 7.7 percent this week. Tata Steel Ltd
ended 0.5 percent lower.
For additional stocks on the move double click
FACTORS TO WATCH
* Dollar struggles against doubts over Fed shift
* Brent holds above $111, US oil in longest losing streak since
* World stocks hold at all-time highs after bumper week
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
For top Asian company news, double click on:
U.S. company news European company news
Forex news Global Economy news
Technology news Telecoms news
Media news Banking news
Politics/General Asia Macro data
(Reporting by Indulal PM; Editing by Subhranshu Sahu)