Indian share prices closed at a record high on Monday, in volatile trade as concerns of a hike in interest rates eased, dealers said. They said buying sentiment improved on the waning of global and local rate concerns, after the US Federal Reserve kept key rates unchanged last week.
The 30-share Sensex index rose 13.75 points or 0.09 percent to 14,664.26, beating its previous record of 14,652.09 on February 8. The Sensex also hit a new intraday record of 14,745.97, beating its previous 14,723.88 on February 9 this year.
Dealers said also sentiment improved as India's inflation fell to a 14-month low of 4.03 percent, according to data released last Friday, lowering pressure for a further interest rate hike.
Software stocks, however, fell as the rupee gained against the dollar to 40.66 on Monday from 40.75. Software firms in India bill many of their clients in dollars and a weaker dollar hit earnings. "The markets shone in morning trade, hitting new highs. The trend may not sustain as there are few buying triggers ahead," said Hiten Mehta, fund manager with Fortune Financial Services.
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