Market indices soared to new all-time highs just days before the union budget presentation in parliament. BSE Sensex crossed the 81,300 mark whereas NSE Nifty reached a record high of 24,837.
Leading the gains on BSE Sensex were TCS, Bajaj Finserv, Infosys, M&M and HUL. While industry heavyweights shined on benchmark indices, small and mid cap stocks remained under pressure.
Rebounding from its early lows, the 30-share BSE Sensex rose by 626.91 points or 0.78 per cent to settle at a fresh closing high of 81,343.46. The index opened on a weak note and hit a low of 80,390.37 points in early trade.
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However buying in IT shares TCS, Infosys and Tech Mahindra and index heavyweight Reliance Industries helped the index pare losses in the afternoon session. The barometer surged 806 points or 0.99 per cent to hit a new record intra-day peak of 81,522.55.
The broader Nifty also pared early losses and climbed 187.85 points or 0.76 per cent to settle at an all-time closing high of 24,800.85. During the day, it zoomed 224.75 points or 0.91 per cent to hit a fresh lifetime high of 24,837.75.
"The frontline indices firmed up in the second half, reaching fresh highs driven by renewed buying in IT stocks. Investor optimism for the sector grew after strong performance reports from the country's leading IT firms in the June quarter, coupled with a weakening rupee," Vinod Nair, Head of Research, Geojit Financial Services, said.
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Softening US bond yields on growing hopes of a US Fed rate cut by September also boosted FII flows into Indian equities, analysts said.
Among Sensex shares, Tata Consultancy Services rose the most by 3.33 per cent.
Infosys gained 1.93 per cent ahead of the financial results for the June quarter. The IT major after market hours reported a 7 per cent rise in consolidated net profit to Rs 6368 crore for the April-June period and also raised its growth outlook for the current fiscal.
Bajaj Finserv, Infosys, Mahindra & Mahindra, Tech Mahindra, Hindustan Unilever, State Bank of India and HCL Technologies were the biggest gainers.
(With inputs from PTI)
