India's Sensex hits record high of 34,000 on sustained inflows

Traders walks infront of an electronic board in Mumbai, India. Reuters

India's benchmark Sensex index hit a record high of 34,000 on Tuesday on the back of sustained buying by the overseas investors amidst expectations of growth and further reforms from the government.

Most other Southeast Asian markets were subdued in trading thinned by year-end holidays. Stock markets in Australia and Hong Kong remained closed after Monday's Christmas holiday, and many financial centers in Europe will also be shut on Tuesday.

Mirroring the muted sentiment, U.S. equity-index futures opened little changed in their first trading this week.

At 0610 GMT, the S&P BSE Sensex added 0.01 percent at 33,945 after hitting a high of 34,005 earlier in the session while the broader NSE Nifty gained 0.03 percent to 10,495.

Overseas investors have invested Rs 498.4 billion in equities so far in 2017 and another Rs 1.5 trillion in debt markets.

Among the top Sensex gainers, Sun Pharma rose 1 percent, Tata Steel gained 0.8 percent, Yes Bank advanced 0.7 percent while Asian Paints was up 0.6 percent.

Reliance Communications jumped 5 percent after the Economic Times reported that a deal between Anil Ambani's RCom and Mukesh Ambani's owned Reliance Industries will be announced later in the day.

Prakash Industries climbed 5 percent after markets regulator Securities and Exchange Board of India removed the steelmaker from its list of dubious companies.

But AIA Engineering lost 1 percent after the company said Brazil initiated an anti-dumping investigation on exports from India into Brazil.

Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.