In step with the rise in broader equity indices after two straight sessions of decline previously, rupee also firmed up and hit 60.19 levels against the US dollar.

The benchmark S&P BSE Sensex today resumed strong on the back of rally on Wall Street last Friday. It gradually moved up further to an intra-trade peak of 27,354.99 before logging a life-time closing high of 27,319.85 - a rise of 293.15 points or 1.08 per cent. In previous two sessions, it had fallen by 113.33 points or 0.42 percent.

Today it surpassed its previous all-time intra-day peak of 27,225.85 and closing high of 27,139.94 hit on September 3.

Among Sensex stocks, Hindalco stole the show, rising by 3.49 percent. Overall, 26 Sensex stocks ended higher. Gainers included Axis Bank, Bajaj Auto, HDFC Bank, Infosys and ONGC.

The broad-based 50-issue CNX Nifty of the NSE also commenced higher and rallied further to hit a new intra-day peak of 8,180.20 before recording new closing high of 8,173.90, up 87.05 points or 1.08 percent.

It also surpassed previous all-time intra-day peak of 8,141.90 and closing high of 8,114.60 hit on September 3.

"FII buying in equity segment and easing crude oil prices further boosted market sentiment. Almost all sectors saw buying interest, as hopes for implementation of better reforms by new government keeps the market spirit high," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Oil & gas shares were at the forefront. Brent crude for October lost 46 cents to USD 100.31 in afternoon trade after subdued US jobs data fuelled demand concerns and on a cease-fire between Russia and Ukraine.

A lower crude price will help India, which imports about 80 percent of oil needs, to contain CAD and fiscal deficit.

Persistent foreign fund buying is the force behind the rally. Data showed FPIs/FIIs bought shares worth Rs 4,813.38 crore last week, including September 5 provisional data.

Buying was seen in most sectors, as 11 out of 12 sectoral indices gained between 0.26 per cent and 1.79 per cent.

Oil&Gas, FMCG, Bankex, Metal and IT shares took the lead. Smallcap and midcap shares saw heavy buying as well.

Equity brokers said after two days of consolidation, activity gathered momentum ahead of key macro economic data releases, including IIP and inflation, later this week.

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