The benchmark BSE Sensex today hit a new lifetime high of 22,040.72 but pared gains on profit-booking to close at 21,832.61, amid cautious trading ahead of a US Federal Reserve policy meeting.
After climbing to all-time intra-day high during the session, the 30-share BSE Sensex ended higher by just 22.81 points, or 0.10 per cent, at 21,832.61 -- its second straight day of gains.
Maruti Suzuki, which gained nearly 8 per cent after the company decided to seek minority shareholders' nod for the controversial Gujarat plant, led the 17 BSE Sensex gainers.
Other major supporters were Bajaj Auto, Coal India, Dr Reddy's Lab., Reliance Industries, ITC, SBI and ONGC.
Tata Motors led the 13 Sensex losers.
The 50-share NSE index Nifty also surged to mark a new lifetime high of 6,574.95, before closing at 6,516.65, a rise of 12.45 points, or 0.19 per cent.
"Indices opened on a bullish note on account of positive global cues and also as Ukraine tensions seemed to ease in the near-term. However, after initial rally, they witnessed selling pressure and pared most of day's gains," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
A firming trend in the Asian region and foreign institutional investors remaining net buyers in Indian equities for the third straight week, supported Indian stocks.
American brokerage Goldman Sachs also upgraded India to "overweight" on reducing external vulnerabilities and said it expects the NSE Nifty to touch 7,600 level this year.
Sectorally, the BSE FMCG sector index today gained the most by rising 1.84 per cent, followed by Power sector index (up 1.27 per cent), Consumer Durable index (0.89 per cent) and Oil & Gas index (0.87 per cent).
IT, Capital goods and Realty scrips ended lower.
Indian shares hit record highs as domestic-focused firms rally
(Reuters) Indian shares rallied to record highs on Tuesday as strong buying by foreign investors continued to bolster blue chips in the lead-up to general elections, especially companies more geared towards the domestic economy such as HDFC Bank.
Still, a bout of profit-taking erased most of the gains from earlier in the session as some technical indicators such as the relative strength index indicating overbought conditions.
A powerful rally over the past month and a half - with the NSE index up 7 percent since the end of January - has reflected hopes that the opposition Bharatiya Janata Party, perceived by markets to be more