The benchmark BSE Sensex and the NSE Nifty hit their new all-time peaks of 28,958.10 and 8,741.85 respectively on sustained funds inflows amid pre-budget optimism among participants.

The 30-share index resumed higher at 28,843.09 and firmed up further to an all-time intra-day high of 28,958.10, before closing at a fresh record of 28,888.86, rising 104.19 points from its last close. The Sensex surpassed its previous peak of 28,829.29, recorded yesterday.

The gauge has now gained 1,542.04 points in the five sessions.

The Nifty touched 8,741.85 intra-day, breaking the earlier record of 8,707.90, reached in yesterday’s trade.

The 50-share index ended above the 8,700 level for the first time by surging 33.90 points, or 0.39 per cent, at new peak of 8,729.50, surpassing its previous closing high of 8,695.60 hit yesterday.

Of the Sensex, 18 scrips led by Hind Unilever, Bharti Airtel, HDFC Ltd, SBI, Coal India, Infosys, Hero MotoCorp, Sun Pharma, Bajaj Auto, L&T, Tata Power, Dr Reddy, Maruti Suzuki, TCS, ICICI Bank, BHEL, NTPC and RIL closed higher, while 12 ended in the negative zone.

Stocks of ITC Ltd plunged 5.01 per cent to Rs 352 even after company reported an over 10 per cent rise in its net profit at Rs 2,635 crore for the third quarter ended December 31, 2014.

Besides, positive global cues with Asian markets ending mixed and a higher opening at European markets on speculation of European Central Bank stepping up stimulus measures at its meeting on January 22 also boosted trading sentiments, equity brokers said.

“Continued foreign funds inflow since the RBI’s surprise rate cut last week and encouraging Q3 earnings by some bluechip companies lifted the key benchmarks to hit new highs,” said Delhi-based broker Manoj Choraria.

Interest rate-sensitive stocks have been in the limelight since the Reserve Bank of India’s surprise rate cut last week raised hopes of a start of a monetary easing cycle.

The provisional data released by the stock exchanges showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1,275.59 crore yesterday.

Sectorwise, BSE Consumer Durables index gained the most by surging 1.41 per cent, followed by Metal Teck index 1.17 per cent, IT index 0.96 per cent, Capital Goods index 0.87 per cent, Bankex 0.39 per cent, Healthcare index 0.32 per cent, Power index 0.11 per cent and Auto index 0.07 per cent.

However, Midcap and smallcap indices ended in negative zone by falling 0.24 per cent and 0.20 per cent respectively.

Shrikant Chouhan, Head- Technical Research, Kotak Securities:
Today again the market players have preferred to trade/invest in core economy related sectors like psu banks, oil and gas stocks and finally capital goods and infra stocks.  It was more stock specific concentrated market rather than broad based.  Unexpected support from HUL and Hero Motors has helped the market to sustain above the level of 8700. Tomorrow in case if the market break 8689 then we can expect weakness for the day but it should be limited to 8600or 8625.  We are not expecting 8600 to break in a normal course of condition.  On the higher side 8745 is the level above which it would jump to 8800 or 8850 in the near term.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
As far as global events are concerned, the certainty are unknown but the reduction in bond yields suggest that EU QE is about to start. This comes at the time when US QE is likely to get negative by the year end. In the last 2-3 years, ECB has not been able to increase QE to the extent and composition as required. However, given its own issues, we have to agree that EU economy has improved a lot. But to take growth to next level more liquidity is required. Given the recent rally ahead of ECB meet tomorrow, Greece vote and FED-rate decision, we should be cautious and brace for volatility as decision is digested. As global concerns are handled, India can look ahead for new reforms and budget expectation.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets were seen making new highs for a second consecutive day ahead of the budget and January F&O expiry.  The date for the general budget was declared on 28 February 2015. The market will remain positive because of sustained buying by the FII, but can show volatile movements due to slightly overbought situation.
Nifty closed at 8729, up around 33 points. Nifty today opened at 8575, made an intraday high of 8707 and a low of 8574. The market breadth turned to negative from positive as there were seen 1228 stocks advancing against 1709 stocks declining. The Nifty volatility index, India VIX stood at 17.7125 up around 2.54%.
The major sectoral gainers for the day were Consumer Durables and IT, which ended up around 1.41% and 0.96% respectively.  Losers were FMCG and Metal which closed down around 1.89% and 0.56% respectively.  But the Mid cap and small sectors were seen under performing the broader market, closed down around 0.24% and 0.20% respectively.
In the stocks’ front, the gainers were HUL and Bank Baroda, closed up around 5.35% and 3.77% respectively whereas ITC and Cipla were losers ended down around 5.21% and 2.93% respectively.
Axis Bank, Gabriel, Grasim, HDFC, HDFC Bank, ICICI Bank, IndusInd Bank, Infratel, Maruti and SBIN are some of the stocks which made all time high.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 1275.59 crore on Tuesday, 20 January 2015. On the other hand the DIIs were net sellers on 20 January 2014, sold shares worth Rs 761.6 crore as per the provisional data from the stock exchanges.
The European markets were unchanged and the US index futures were trading higher. In the Bank of Japan’s monetary policy it decided to continue its stimulus packages.
Tomorrow, Mastek, International Paper, HCL-Info, Deepak Nitrite, Biocon, Cairn, Muthoot fin, Polaris and Orient cements are the major companies which may announce their earnings.

Indian shares hit record for 2nd straight day
(Reuters) Indian shares edged higher, hitting a record high for the second consecutive day and gaining for the fifth straight session, as blue-chips rose on hopes of additional monetary policy easing, while strong regional markets also helped.

Shares also benefitted on hopes of economic and fiscal reforms after the government said it would unveil its 2015/16 budget on Feb. 28.

The benchmark BSE index gained 0.36 percent to 28,888.86. The index rose as much as 0.6 percent to hit a record high of 28,958.10.

The broader NSE index rose 0.39 percent to 8,729.50, after gaining as much as 0.53 percent earlier in the day to hit an all-time high of 8,741.85.