The market rose to a record high for a seventh consecutive session as Larsen & Toubro extended a rally after the Reserve Bank of India (RBI) left interest rates unchanged and said it did not expect policy tightening in the near-term.
The RBI has raised the repo rate by 75 basis points since September to contain high inflation, but analysts had expected the central bank would keep rates steady ahead of general elections and an uncertain economic growth outlook.
India's record-setting share rally has been sparked by heavy foreign buying - reaching a $3.3 billion in March - as analysts cite expectations of a recovery in the domestic economy.
However, analysts warn momentum could eventually wane, with investors on Tuesday also booking profits in recent outperformers such as banks. Data on Tuesday showed manufacturing activity grew at a slower pace in March as weaker domestic demand dragged on output growth.
We continue to believe that till the election result is clear, index will remain in the sidelines and bulk of the action will be witnessed in mid and small caps.Profit booking in banking stocks is only a near-term phenomenon.
The Sensex rose as much as 0.44 percent to an all-time high of 22,485.77, while Nifty gained 0.41 percent to a record high of 6,732.25.Sensex ended 0.27 percent higher while Nifty ended up 0.25 percent,
Larsen & Toubro gained 0.6 percent, while Tata Consultancy Services rose 2 percent.Reliance Industries rose 1.3 percent and Tata Motors ended 1.1 percent higher.Mahindra and Mahindra Ltd gained 2 percent after the company said its domestic tractor sales rose 7 percent to 16,571 tractors in March.
Investors also took profits on recent performers such as Hindalco Industries Ltd , which fell 2.5 percent on profit taking after rising 8.3 percent on Monday.Punjab National Bank ended down 1 percent after being the best performer of the NSE in March with a 35 percent rally.
Among other stocks that fell, Natco Pharma fell 14.22 percent, after the U.S. Supreme Court on Monday agreed to hear an appeal filed by Teva Pharmaceutical Industries Ltd in a patent fight over top-selling multiple sclerosis drug Copaxone.
The RBI has raised the repo rate by 75 basis points since September to contain high inflation, but analysts had expected the central bank would keep rates steady ahead of general elections and an uncertain economic growth outlook.
India's record-setting share rally has been sparked by heavy foreign buying - reaching a $3.3 billion in March - as analysts cite expectations of a recovery in the domestic economy.
However, analysts warn momentum could eventually wane, with investors on Tuesday also booking profits in recent outperformers such as banks. Data on Tuesday showed manufacturing activity grew at a slower pace in March as weaker domestic demand dragged on output growth.
We continue to believe that till the election result is clear, index will remain in the sidelines and bulk of the action will be witnessed in mid and small caps.Profit booking in banking stocks is only a near-term phenomenon.
The Sensex rose as much as 0.44 percent to an all-time high of 22,485.77, while Nifty gained 0.41 percent to a record high of 6,732.25.Sensex ended 0.27 percent higher while Nifty ended up 0.25 percent,
Larsen & Toubro gained 0.6 percent, while Tata Consultancy Services rose 2 percent.Reliance Industries rose 1.3 percent and Tata Motors ended 1.1 percent higher.Mahindra and Mahindra Ltd gained 2 percent after the company said its domestic tractor sales rose 7 percent to 16,571 tractors in March.
Investors also took profits on recent performers such as Hindalco Industries Ltd , which fell 2.5 percent on profit taking after rising 8.3 percent on Monday.Punjab National Bank ended down 1 percent after being the best performer of the NSE in March with a 35 percent rally.
Among other stocks that fell, Natco Pharma fell 14.22 percent, after the U.S. Supreme Court on Monday agreed to hear an appeal filed by Teva Pharmaceutical Industries Ltd in a patent fight over top-selling multiple sclerosis drug Copaxone.