Stocks kept their winning run going for a second session as the BSE Sensex gained over 184 points to 28,208.62 -- a nearly one-year high -- on more positive signals on GST bill and improvement in corporate earnings.
Besides, the broader NSE Nifty perked up by 50.50 points to touch a fresh 15-month high at 8,666.30.
Shares of Asian Paints hit record high after rising 6.14 per cent to Rs 1,126.95 following 18.46 per cent jump in consolidated net profit to Rs 552.56 crore.
Automaker Maruti Suzuki India surged 4.47 per cent to Rs 4,762.70 after it announced plans to have 250 Nexa outlets by March and said the premium sales and service outlets to contribute 15 per cent of the company's sales by 2020.
The government meanwhile reached out to leaders of several opposition parties, including Congress and Samajwadi Party, over the contentious GST bill which is likely to be taken up by Rajya Sabha next week.
Traders said covering-up of short positions on expiry of July series of derivative contracts and participants carrying positions to new series also boosted sentiment.
"But low F&O rollovers suggest that sharp spikes recently may have prompted a wait-and-watch approach, especially with the outcome of both GST and RBI monetary policy out in less than a fortnight," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
After opening strong, the Sensex rose further to hit a high of 28,240.20 before settling 184.29 points or 0.66 per cent higher at 28,208.62 -- its highest closing since August 7 when it had ended at 28,236.39.
The 50-share Nifty after shuttling between 8,674.70 and 8,625.25, settled 50.50 points or 0.59 per cent higher at 8,666.30. This is the highest closing since April 16 last year at 8,706.70.
Shares of Multi Commodities Exchange of India (MCX) rose 0.84 per cent to Rs 1,068.30 after the government raised the foreign investment limit in stock exchanges to 15 per cent.
Overseas, the US Federal Reserve yesterday kept interest rates at ultra-low level after the conclusion of a two-day monetary policy meeting. The ultra-loose policy is expected to encourage heavy investments into emerging markets.
Asian stocks ended largely lower with Japan's Nikkei falling by 1.13 per cent, while other indices like China, Hong Kong, Singapore and South Korea moved down by 0.20 per cent to 0.62 per cent.
European markets were mixed with London's FTSE falling 0.19 per cent, Paris' CAC down 0.14 per cent and Frankfurt up 0.02 per cent.
Back home, 14 stocks advanced out of the 30-share Sensex
pack.
Smart index movers included ITC 2.48 per cent, Sun Pharma 1.99 per cent, Power Grid 1.71 per cent, TCS 1.53 per cent, RIL 1.28 per cent, Coal India 1.09 per cent, SBI 1.01 per cent and HDFC 0.97 per cent.
Key laggards were L&T 1.51 per cent, Adani Ports 1.38 per cent, Tata Steel 1.30 per cent, Axis Bank 0.98 per cent, Dr Reddy's 0.93 per cent and Lupin 0.86 per cent.
Among sectoral, consumer durables shot up by 2.30 per cent followed by FMCG 1.50 per cent, realty 0.95 per cent, auto 0.81 per cent, telecom 0.75 per cent, utilities 0.66 per cent, power 0.56 per cent and energy 0.53 per cent.
However capital goods, metal, industrials and oil&gas ended up on the losing side.
In broader markets, mid-cap and small-cap indices rose by 0.62 per cent and 0.60 per cent, respectively.
The market breadth turned positive as 1,486 stocks ended higher, 1,164 declined, while 228 ruled unchanged.
The total turnover rose to Rs 4,042.79 crore from Rs 3,487.26 crore yesterday.
