The benchmark equity indices rose for the sixth session in a row on Tuesday and recorded the best winning streak in nearly a month as sharp gains in financial services stocks supported the rally.
The NSE Nifty 50 ended 41.70 points or 0.17% higher at 24,167.25 and the BSE Sensex closed 187.09 points or 0.24% up at 79,595.59.
During the session, the Nifty rose 0.35% to the day's high of 24,242.6 and the Sensex gained 0.52% to 79,842.3
The Nifty Bank and Nifty Financial Services hit record highs as expectations of better performance from this sector rose following upbeat results from HDFC Bank Ltd. and ICICI Bank Ltd.
"This sudden turnaround follows weeks of selling and points to a renewed sense of optimism," Trivesh D, chief operating officer at Tradejini, said. "Several factors are driving this shift."
A weakening US Dollar Index, now around 100, is making India a more attractive destination for global investors, according to Trivesh. "Coupled with low inflation, steady crude prices and strong Q4 earnings — especially from banks — India stands out among emerging markets."
HDFC Bank, ITC Ltd., Mahindra & Mahindra Ltd., ICICI Bank and Hindustan Unilever Ltd. led the gains in the Nifty.
Infosys Ltd., Bharti Airtel Ltd., Power Grid Corp., Reliance Industries Ltd. and IndusInd Bank Ltd. weighed on the index.
On the NSE, 12 out of the 15 sectoral indices advanced, with the Nifty Realty and FMCG declining the most.
The broader markets outperformed the benchmark indices as the BSE MidCap and SmallCap ended 0.81% and 0.82% higher respectively.
On the BSE, 11 sectors advanced and 10 declined out of 20. The BSE Realty rose the most, while Power declined the most.
The market breadth was skewed in favour of the buyers as 2,477 stocks advanced, 1,509 declined and 144 remained unchanged on the BSE.
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