The 50-share NSE index ripped through the 9,100-mark to hit 9,122.75, an all-time intra-day high too.
The rupee flexed muscles, climbing to a 16-month high of 65.82, a huge gain of 78 paise. Despite a spike in February WPI inflation to 6.55 per cent, investors set aside all their caution and pumped in more money on hopes that the assembly poll win will make the government push through bold reforms.
At one point, the 30-share blue-chip index rallied 615.70 points to hit a high of 29,561.93. In the end, it settled up 496.40 points, or 1.71 per cent, at 29,442.63 -- a level last seen on March 5, 2015.
The gauge had gained 44 points in the previous two sessions. Markets were shut yesterday for Holi.
Also Read
The Nifty settled higher by 152.45 points, or 1.71 per cent, at a life-time high of 9,087, surpassing its previous record of 8,996.25 on March 3, 2015.
ICICI Bank was the best performer with 5.99 per cent gain. Support also came in from Hindustan Unilever (4.54 per cent), L&T (4.40 per cent), HDFC Ltd (3.69 per cent), Asian Paints (3.51 per cent), Maruti Suzuki (3.02 per cent) and Adani Ports (2.92 per cent).
Sun Pharma rose 3.61 per cent after the US health regulator proposed to lift the import alert on the company's Mohali (Punjab) manufacturing plant.
The BSE capital goods index had a field day, rising 3.06 per cent, followed by realty 2.57 per cent, consumer durables 2.40 per cent, bank 1.93 per cent and FMCG 1.60 per cent.
With the buying activity gathering momentum, second-line stocks continued their upward sprint. The BSE mid-cap and small-cap indices rose 1.43 per cent and 1.19 per cent, respectively.
A good 26 Sensex stocks ended in the green while 5 others
turned red.
The market breadth turned positive as 1,704 shares ended higher, 1,125 lower while 216 ruled steady. The total turnover on BSE read Rs 4,677.92 crore, down from Rs 7,509.23 crore previously.