After consolidating for major part of the day, Sensex hit 20,000 level in fag-end of trading but closed at 19,990.18 recording a gain of 101.23 points, or 0.51 per cent. It has now gained over 410 points in three days. Sensex had touched 20K-level on January 31 but failed to close above the mark.
Overall in the BSE today, buying was seen in heavyweights amid market breadth remaining equal as 975 stocks closed with gains while 974 ended with losses. HDFC which rose 3.8 per cent and FMCG major ITC that gained 2.2 per cent together pushed up Sensex by 100 points.
HDFC Bank, HUL, Tata Motors, TCS, Coal India and Hindalco clocked smart gains. The upsurge was supported by stocks of FMCG, oil and gas and banking sectors.
The broad-based National Stock Exchange index NSE Nifty rose by 25.75 points, or 0.43 per cent, to 6,069.30. Similarly, MCX Stock Exchange (MCX-SX) flagship index, SX40 rose by 65.53 points, 0.56 per cent, to close at 11,796.74 points.
"Equity market extended gains yet again despite ongoing political mayhem. The Nifty was seen retaining the 6000-mark and we expect the momentum to continue further," said Amar Ambani, Head of Research,IIFL.
The Budget session of Parliament was abruptly adjourned sine die today, with the second phase turning out to be a total washout. With the sudden curtailment of the session, key legislations like the National Food Security Bill and the Land Acquisition Bill could not be passed.
Brokers, however, said market remained upbeat ever since RBI cut key interest rate to bolster GDP growth last week. FII inflows have also gained pace, they added. Overseas investors have pumped in a record USD 12 billion so far this year.
Traders said investors were tracking Karnataka poll results where Congress was galloping its way to power in Karnataka with a majority on its own after a gap of 7 years.
Traders said HDFC was the top gainer from Sensex on more than 17 per cent rise in the Q4 net profit. ITC also rose on heavy buying after UP government's move to slash VAT on cigarette-cigar to 25 per cent is seen as boosting sales.
Globally, Asian markets ended higher with the Nikkei rising to a fresh multi-year high following a strong overnight lead from the US and Europe. Key indices in Hong Kong, Singapore, South Korea, Japan, China and Taiwan finished higher by 0.11 per cent to 1.27 per cent.
European stock markets were also trading higher in their early trade as indices in France, Germany and UK inched up by 0.10 per cent to 0.43 per cent. US stocks rose yesterday with Dow Jones closing above 15,000-mark for the first time ever.
Turning back to the domestic market, 16 scrips out of the 30-share Sensex pack ended lower while 14 finished higher.
Besides HDFC and ITC, other major gainers were HDFC Bank(1.38 pc, HUL (1.23 pc), Hindalco Ind (0.83 pc), and Coal India (0.74 pc). However, Bharti Airtel dropped by 1.82 per cent, followed by Hero Motocorp (1.78 pc), Tata Steel (1.45 pc), M&M (1.35 pc), Jindal Steel (1.13 pc).
Commenting on NSE Nifty, Nagji K Rita, Chairman & MD, Inventure Growth & Securities said: "Nifty has entered the overbought zone, technically. A break below 6025 can result in some profit booking setting in. On the upper end, 6080-6120 is a resistance zone."
Among the BSE sectoral indices, the S&P BSE-FMCG rose by 1.43 per cent, followed by S&P BSE-Bankex (0.11 pc), S&P BSE-Oil&Gas (0.11 pc) and S&P BSE-HC (0.08 pc). However, S&P BSE-CG eased by 0.65 per cent, S&P BSE-Auto by 0.46 per cent and S&P BSE-Metal by 0.36 per cent.
Total turnover rose to 2,069.20 crore from Rs 1,924.53 crore yesterday.