Rising for the third day in a row, both Sensex and Nifty ended Monday's session at new closing high. Supported by fresh buying in power and capital goods shares as the optimism over incoming Narendra Modi-led Government continues, rupee also continued to appreciate against US dollar.
The benchmark Sensex attained its new closing peak of 24,363.05, after is rose by 241.31 points. The broader index, Nifty also surged by 60.55 points to new closing peak of 7,263.55.
Both indices surpassed previous closing highs hit on Friday's session. In three days, they have gained above 2 per cent.
In tandem with upmove in equity markets, the rupee also gained 20 paise and closed at a fresh 11-month high of Rs 58.59 per dollar on sustained inflows. Continued dollar selling by exporters and some banks also boosted the rupee sentiment, a forex dealer said.
Weak dollar overseas helped as the dollar index, a gauge of six major global rivals, was down by 0.13 per cent. Previously, it had closed at 57.87 on June 17, 2013. In four days, rupee has gained 146 paise.
Meanwhile, equity markets rose on back of heavy buying in power, capital goods, real estate, metal and oil & gas sectors. Information technology and technology sector saw heavy selling as rupee continued to rise. Selling pressure was also seen in FMCG and healthcare shares.
Of the 12 sectoral indices trading on BSE, 8 indices advanced while four declined. Power index was the top gainer and rose by 10.15 per cent. Other gainer includes capital goods, real estate, metal and oil & gas indices as they surged by 8.34 per cent, 6.91 per cent, 6.81 per cent and 5.26 per cent respectively.
Heavy selling was seen in information technology index as it fell by 4.95 per cent. FMCG, healthcare and technology indices also slid by 4 per cent, 3.66 per cent and 3.46 per cent respectively.
Nineteen scrips out of the 30-share Sensex pack ended higher while 11 others finished lower. Second-tier stocks attracted heavy buying interest from retail investors and notched handsome gains.
The BSE Smallcap and BSE Midcap indices closed up 4.19 per cent and 5.82 per cent respectively, outperforming the Sensex's 1 per cent rise.
Hopes of a stable and business-friendly government that will put growth back on track and kick-start reforms, is driving markets higher, brokers said.
Besides, a clutch of foreign brokerages like Nomura and Goldman Sachs have upgraded Sensex and Nifty targets, they added.
Major Sensex gainers were BHEl, Coal India and NTPC as the three state run companies rose by 16.94 per cent, 12.73 per cent and 10.35 per cent respectively. Other major gainers included ONGC, Tata Power, Hindalco, l&T and SBI which gained 8.17 per cent, 7.95 per cent, 7.76 per cent, 6.92 per cent and 6.45 per cent respectively.
However, TCS dropped by 5.69 per cent, followed by ITC 5.45 per cent, Dr Reddy's lab 5.22 per cent, Infosys 4.88 per cent, Sun Pharma 4.83 per cent, Wipro 4.25 per cent, HUl 4.07 per cent, Bajaj Auto 2.58 per cent and Tata Motors 1.21 per cent.
Hefty buying by Foreign Institutional Investors (FII), the main market mover, was seen across the board. FIIs bought shares worth Rs1,350.04 crore on Monday as per provisional data by stock exchanges.
As per market experts, FIIs were booking profits from information technology, and technology shares while initiating buying in beaten down sectors.
Experts further added, FII interest rose in real estate sectors on hopes of quick approvals of projects by the new Government.
Market breadth continued to remain firm as 2,154 stocks finished higher, 698 closed lower while 96 ruled steady. Total turnover fell to Rs5,714.28 crore from Rs6,808.44 crore on last Friday.