The 30-share BSE index took 33 sessions to rise 1,000 points before it finally went beyond the psychologically significant 32,000. Higher Asian and European stocks provided fodder after the US Fed chief, in a House testimony, signalled that the approach to higher rates will be steady, prompting investors here to buy more.
Retail inflation for June hit a historically low 1.54% and industrial output growth for May slumped to 1.7%, boosting chances of a rate reduction by the Reserve Bank at its upcoming August policy meet.
The macro numbers were released after market hours on Wednesday. The BSE Sensex settled at a new peak of 32,037.38, up 232.56 points, or 0.73%. It surpassed its previous record of 31,804.82 touched yesterday. In past four days, the index had gained 676.75 points.
The broader 50-issue NSE Nifty spurted 75.60 points, or 0.77%, to close at fresh lifetime high of 9,891.70, bettering its earlier record 9,816.10 hit Wednesday.
Both indices rose for the fourth consecutive session. ITC emerged as the top gainer by rising 3.03%. Bharti Airtel, ICICI Bank and Sun Pharma rose up to 1.84%. The largest IT exporter, TCS, firmed up 0.20% ahead of its June quarterly earnings on Thursday.
Traders said ample liquidity in the market is driving the current phase of the rally amid optimism over earnings from blue-chip companies. Consumer goods and banking stocks had a good day. The FMCG index rose the most by surging 1.58%, followed by capital goods and banking.
Foreign investors have been supporting the ongoing rally by pumping in sizeable money into domestic markets. Foreign portfolio investors (FPIs) bought shares worth a net Rs 361.25 crore on Wednesday while domestic institutional investors (DIIs) sold shares worth a net Rs 330.58 crore, showed provisional data.
Buying activity also rubbed off on broader markets, with mid-cap and small-cap indices ruling up.
