August 27, 2018 / 6:28 AM / in 8 months

Indian shares climb to fresh record, banks provide boost

* NSE index up 0.96 pct, BSE index up 1.01 pct

* Financial stocks top gainers on NSE index

* BSE, NSE hit record highs

By Abinaya Vijayaraghavan

Aug 27 (Reuters) - Indian stock indexes surged to an all-time high on Monday, the ninth time this month, following positive global cues and boosted by gains in bank stocks including ICICI and Kotak Mahindra.

The broader NSE index climbed as much as 0.95 percent to a life high of 11,667.25, while the benchmark BSE index also hit a record, rising 1.01 percent to 38,637.53.

Indian markets were tracking “global cues and (corporate) earnings across the board have been relatively strong, so we are at a stretched valuation,” said Sanjiv Bhasin, Executive VP, Markets and Corporate Affairs, India Infoline.

Asian shares were also higher, boosted by record Wall Street highs last week that followed reassuring comments from the U.S. Federal Reserve Chair, and as stock markets in China gained after the country’s central bank tweaked its management of the yuan.

ICICI, India’s third-largest lender by assets, gained as much as 1.9 percent in morning trading, while Kotak Mahindra rose as much as 2.4 percent, hitting its highest in nearly two weeks.

The Nifty PSU bank index, which tracks India’s state-owned lenders, rose as much as 2.50 percent to its highest level since Aug. 21, with State Bank of India and Bank of Baroda providing the biggest boosts.

“Inflation being moderate, there does not seem to be any cause for a rate hike, and it is being priced in the bond yields that RBI will not raise rates, for which the direct beneficiary are the (public sector) banks,” Bhasin said.

Consumer products company Future Retail Ltd’s shares rose as much as 6.2 percent, their biggest one-day gain since May 25, after media reports that Google and Amazon were in talks to buy a stake in the company. (Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Sai Sachin Ravikumar)

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