Sensex Exceeds 20,000 on Record Investment

India's Sensitive Index topped 20,000 for the first time, buoyed by record inflows from U.S. and European investors that have caused the benchmark to double in less than two years.

The stock market has risen about 39 percent since it became the third emerging market after China and Russia to surpass $1 trillion in May, helped by the fastest economic growth in 60 years and a strengthening currency. Reliance Industries Ltd. led gains, elevating Chairman Mukesh Ambani to be the world's richest man, Press Trust of India reported.

``Liquidity has played an important role in this rally,'' said Chakri Lokapriya, who manages $850 million of stocks in India, Brazil, Russia and China at BNP Paribas Asset Management U.K. Ltd. in London. ``Investors have reduced exposure to western markets and as a result increased flows to emerging economies like India and China.''

Investors based outside India bought a record $17 billion of equities this year, according to the Securities and Exchange Board of India, the nation's regulator.

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