Indian stocks jump to new record

Indian markets have had a stellar year

India's main stock index, the Sensex, has gone past the 17,000 mark to reach a new intraday record high.

The index hit 17,074 points at one point on Wednesday, before eventually falling back to finish the day's trading at 16,921.

The index had taken 51 trading sessions to get from 15,000 to 16,000.

Indian financial analysts believe the gains, made after massive inflows of overseas capital and corporate earnings, are likely to continue.

"The speed with which the markets have gone up is because we are seeing a huge flow from foreign funds," the Associated Press news agency quoted Mumbai (Bombay)-based analyst Rajeev Sampat as saying.

"India is one of the safest havens among the emerging markets," he said.

'Momentum'

Foreign funds have invested almost $10bn in Indian stocks since the beginning of this year, and the foreign fund inflows are expected to rise after the US Federal Reserve cut interest rates last week.

"Good news flow on quarterly earnings and improving global liquidity led by easing credit concerns have brought momentum back to the markets," Ved Prakash Chaturvedi, managing director at Tata Asset Management, told news agency AFP.

Underpinning the stock market has been foreign demand for Indian shares, as investors try to tap into one of the world's best-performing economies.

At the same time, domestic demand has also remained steady.