The market rally was led primarily by banking and consumer goods stocks. Photograph: (Reuters)
The rally came on the back of lower inflation figures which were released on Wednesday offering RBI enough room to bring down interest rates
The 30-share BSE Sensex surged past the 32,000 mark for the first time closing at a record high of 32,037.
The broader 50-share Nifty also closed at a record high of 9,892.
The rally came on the back of retail inflation figures which hit a record low.
The retail inflation data, which came out on Wednesday, saw inflation dropping to a record low of 1.54 per cent. The lower inflation figures offer the Reserve Bank of India enough room for bringing the key interest rates down.
Asian and European indices were also trading higher on the back of Federal Reserve chair Janet Yellen testifying before the US Congress that the rate hike will be steady.
Foreign Portfolio Investors (FPI) took the opportunity to pour more money into the Indian equities.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 361.25 crore yesterday, PTI reported.
The market rally was led primarily by banking and consumer goods stocks.
ITC was the top gainer among the pack surging 3.03 per cent. Other top gainers included Bharti Airtel, ICICI Bank and Sun Pharma.