The 30-share index surged to record intra-day high of 22,363.97 points on buying by foreign funds mainly in banking stocks after RBI extended the deadline for banks to implement BASEL III norms by a year to 2019.
Increased fun flows also pushed the rupee to trade below a crucial 60 level against the US dollar which further strengthened the market sentiment, brokers said.
Markets Top Gainers, Markets Top Losers
Later, the barometer closed at 22,339.97 points, up by 125.60 points, or 0.57 per cent, over the previous close.
The National Stock Exchange's wide-based index NSE Nifty shot up by 54.15 points, or 0.82 per cent, to record closing high of 6,695.90, after hitting a life-time high of 6,702.60 in day trade.
Both the key indices touched record high levels intra-day in the five sessions till today.
Brokers said the market remained on a record setting spree this week ever since indications of an improvement in the economic growth and expectations of RBI keeping interest rates on hold in its policy meeting on Tuesday.
They said the FIIs were fancy of Indian equties and remained net buyers, which also raised demand for the rupee.
The rupee appreciated to 59.90 per dollar at one point of time, its best level in eight months. The currency has risen 2.8 per cent this month, the most among major Asian currencies.
State-run banks continued to support the rally on interest concerns and RBI extended the deadline for banks to implement Basel III capital rules by a year, they added.
In 30-BSE index components, 19 stocks ended with gains led by SBI, Infosys, Reliance Industries and Tata Power.
The power sector index surged the most by rising 3.02 per cent to 1,734.99 followed by PSU index by 2.17 per cent to 6,363.83.
The Realty index rose by 1.61 per cent to 1,427.96 and metal index by 1.52 per cent to 9,684.27.
Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities:
Global markets closed mixed for the week. The US indices ended in the negative zone on geopolitical concerns related to annexation of Crimea by Russia. Tech heavy Nasdaq underperformed significantly during the week. Asian indices closed in the green. Indian equity benchmarks continued to outperform the developed markets as the pre-election rally remained firm during the week. Broadly, the Cyclicals (Cap goods, Infra, PSU banks) are finding favour even as defensives (IT, FMCG and Pharma) are underperforming the markets. Midcaps have also joined the party. Going into the next week, we look forward to the RBI meet on Tuesday. Our sense is that the RBI may maintain status quo on the rate front.
BSE Sensex rises to record, state-run banks extend rally on new Basel deadline
(Reuters) BSE benchmark Sensex rose to record highs for a fifth straight session on Friday as state-run lenders including State Bank of India extended recent gains after RBI extended the deadline for banks to implement Basel III rules by a year.
The NSE index rose as much as 0.91 percent to an all-time high of 6,702.6, while the benchmark BSE index gained 0.67 percent to a lifetime high of 22,363.97.
State Bank of India (SBI) provisionally rose 3.9 percent while Bank of Baroda Ltd gained 6.4 percent.
The benchmark BSE index provisionally closed 0.45 percent higher, while the broader NSE index gained 0.82 percent.
Markets on 27 March, 2014: