Sept. 28 (Bloomberg) -- India's Sensitive Index climbed, extending its record high for the eighth straight day, as overseas investors continue to buy the nation's shares. State Bank of India and Infosys Technologies Ltd. led gains.

``It is a shift away from U.S. assets due to the weakening dollar,'' said Prasad Nalam, who helps manage assets worth the equivalent of $2.5 billion as Chief Investment Officer at Sundaram BNP Paribas Asset Management Co. ``That's driving the Asian markets and India as well.''

The Bombay Stock Exchange's Sensex added 146.73, or 0.8 percent, to 17,297.29. Yesterday, the Sensex closed above 17,000 for the first time. The S&P/CNX Nifty Index on the National Stock Exchange gained 32.95, or 0.7 percent, to 5,033.50. Nifty futures for September delivery gained 1.35 points to 5,010.

Overseas investors bought a net 10 billion rupees ($246 million) of Indian shares yesterday, taking their total equity purchases this year to a record $11.64 billion, according to the Securities & Exchange Board of India's Web site.

Infosys rose 23.25 rupees, or 1.2 percent to 1,935 rupees. State Bank of India gained 61 rupees, or 3.2 percent to 1,947.

Refinery stocks, dominated by state-run firms which can't raise retail prices to match the crude price rise due to government controls, fell as oil for November delivery increased 3.2 percent to $82.88 a barrel in New York yesterday, the biggest one-day gain since May 17 and the second highest close.

Refiners Fall

Hindustan Petroleum Corp. fell 4.45 rupees, or 1.6 percent to 268 rupees and Bharat Petroleum Corp. declined 2.05 rupees, or 0.6 percent to 358.15 rupees.

Deccan Aviation Ltd., operator of India's biggest budget airline, fell 0.65 rupees, or 0.4 percent to 148 after reporting its loss widened 57 percent in the three months ended June 30 to 1.73 billion rupees, from 1.1 billion rupees a year earlier.

DLF Ltd., the nation's biggest real estate developer, advanced 12.40 rupees, or 1.7 percent to 754 rupees on report it may ally with AT&T Inc. and Singapore Telecommunications Ltd. for its proposed mobile-phone services venture in India.

IFCI Ltd., the country's oldest project lender, gained 5.65 rupees, or 6.1 percent to 98.45 after the Economic Times reported it has selected eight of the 10 investors which expressed interest in bidding for a 26 percent stake in the company. That included consortiums led by Wilbur Ross and Shinsei Bank of Japan, Times reported.

NIIT Technologies Ltd. (NITEC IN), surged 16.80 rupees, or 5.03 percent to 350.55, after the Economic Times reported private equity firms Carlyle Group and TPG Inc. may buy a stake in the New Delhi-based software developer. Founders who hold 40 percent of the company may sell between 25 and 40 percent, the report said.

To contact the reporter on this story: M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net.

Last Updated: September 28, 2007 02:11 EDT