The winning run for markets continued for the sixth straight session, with the BSE Sensex reversing all its losses to close about 135 points higher at 24,793.96 - a 5-week high - on continued expectations that RBI would bring down the policy rate. Some fag-end buying saved the day as Nifty reclaimed the 7,500-level.
Most Asian markets remained weak, taking cues from overnight losses in the US following lacklustre Chinese trade data and retreat in crude prices.
The 30-share Sensex opened lower, but across-the-board buying towards the late session, backed up by a higher opening in Europe, meant that the index recovered and ended the day higher by 134.73 points, or 0.55 per cent, at 24,793.96 -- its highest closing in five weeks. It had ended at 24,824.83 on February 1, 2016. The benchmark had gained 1,657.23 points in the previous five sessions in a row. The 50-issue NSE Nifty went past the crucial 7,500-mark and closed higher by 46.50 points, or 0.62 per cent, at 7,531.80.
Intra-day, it hovered between 7,424.30 and 7,539. Brokers said the ongoing bull run has come mostly on hopes of a likely rate cut by the Reserve Bank after the Government retained its deficit target for the next fiscal at 3.5 per cent of GDP in Budget 2016-17.
Revival of buying by foreign funds gave sentiment a lift too. Maruti Suzuki was the toast of town as it surged 4 per cent to Rs 3,600 after the carmaker launched its much-awaited compact SUV model 'Vitara Brezza'.