MUMBAI (Reuters) – The Nifty marked its highest closing level on Monday as infrastructure-related stocks ranging from capital goods makers such as Larsen & Toubro to cement makers and power sector lenders surged on the federal budget’s infra push.

The 50-share index gained 0.62 percent to 8,956.75, surpassing its previous record of 8,952.35 hit on Jan. 29.

India will increase investment in infrastructure by 700 billion rupees ($ 11.35 billion) in the fiscal year 2015-16, Finance Minister Arun Jaitley said on Saturday, when presenting the government’s full-year budget that put growth before reforms and fiscal deficit cuts.]

Private sector banks such as Axis Bank , seen as strong beneficiaries of the government’s move to make no distinction between foreign direct investment and foreign portfolio investment, surged.

The move is expected to raise India’s weight in MSCI indexes, thereby soothing worries about huge India overweight positions.

The benchmark Sensex closed 0.33 percent higher at 29,459.14.

(Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)